Good news continues to come out of the United Kingdom. Today its unemployment fell to a new low of 7.4%. GDP and jobs numbers in the UK have also painted a rosy picture for a while now. The Chancellor of the Exchequer,...
- Detroit News quotes Scott Drenkard & Joseph Henchman on Michiga...
Detroit News quotes Scott Drenkard & Joseph Henchman on Michigan's tax climate
Group moves Michigan up in ranking of tax friendly states
- By MICHAEL MARTINEZ
Michigan has the 12th-friendliest tax system in the nation, thanks to the elimination last year of a complicated business tax, according to the Washington D.C.-based Tax Foundation.
The Great Lakes State experienced the second-highest jump in rank, climbing from No. 18 to No. 12, according to the foundation's 2013 State Business Tax Climate Index, released Tuesday. Economists attributed the jump to the elimination in 2011 of the Michigan Business Tax, which was replaced with a flat-rate 6 percent corporate income tax.
The elimination of the former business tax helped simplify things, said Tax Foundation economist Scott Drenkard.
"It was thought Michigan would never deal with this horrific tax but they did and it's an incredible accomplishment that can never be understated," he said.
The new simplified corporate income tax eliminated myriad calculations that turned off businesses that considered moving to Michigan, said Rich Studley, CEO of the Michigan Chamber of Commerce.
"It might as well have been in Chinese," Studley said Tuesday.
According to the report, this change caused Michigan's corporate income tax rate to jump from 49th best to seventh best, an unprecedented increase.
"It's rare you see such a leap in one year," said Joseph Henchman, Tax Foundation vice president.
Michigan scored low in the unemployment insurance tax rank, rating 44th in the country.
The top 10 states, Henchman said, earned that rank because they do not have one of the three main taxes: individual income tax, corporate income tax or sales tax. The top three states — Wyoming, South Dakota and Nevada — don't have either an individual or a corporate income tax.
"There's no tax quite like no tax," joked Drenkard.
New York ranked the worst among all 50 states, bumping neighbor New Jersey from the undesired spot.
Recently, Governing Magazine ran a blog post analyzing our 2014 State Business Tax Climate Index and its relationship to key economic outcomes like wages and employment-to-population ratios....
On May 28, Wisconsin Representative Dale Kooyenga introduced a bill that reforms numerous elements of Wisconsin’s tax code. These reforms would improve the state’s ranking in the State Business Tax Climate Index,...
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