Simplify regulation, reduce taxes, businesses hires and the result are amazing. Expect better days ahead.
NAIAS should be one happy place next week."Eliminating the Michigan Business Tax (MBT)
As Governor, I will get rid of the worst business tax in the country and replace it with a simple and fair solution that reduces the tax burden by 1.5 billion dollars-a flat corporate income tax. -Rick.
Replacing the Michigan Business Tax with a flat corporate tax will reduce the state’s tax burden, stimulate the economy, and create jobs. Businesses should not have to navigate a complicated and unfair tax code that was written by politicians.
… ... moreInstead, they should be able to simply take their federal corporate taxable income and multiply it by a low single-digit rate. Rick Snyder proposes that the Michigan Business Tax (MBT) be replaced with a flat corporate income tax – a simple solution that will amount to a tax cut of likely more than $1 billion.
Professional politicians created the current system. Politicians created the MBT based on last-minute revenue needs and to keep special interests satisfied. They included dozens of incentives, credits, and deductions – so called “tax expenditures” that unfairly favor some businesses over others.
State Corporate Tax Description Corporate Tax Index Ranking Forbes Business Friendly Ranking
Utah 5% Flat Rate 6 th 3 rd
Virginia 6.0% Flat Rate 4 th 1 st
North Carolina 6.9% Flat Rate 25 th 7 th
Michigan MBT 48 th 49 th
A FLAT LOW-RATE CORPORATE INCOME TAX IS WORKING ELSEWHERE
The current tax system makes it difficult to do business in Michigan, costing our state jobs. The cost of doing business in Michigan is 2-4% higher to companies here than those in most other states. In today’s economy, 2-4% could mean the difference between being in the black or the red. Plus, the MBT puts homegrown businesses at a disadvantage – it caused Plymouth’s Stardock Corporation’s tax liability to increase from $1,200 to $170,000; Bronner's Christmas Wonderland in Frankenmuth experienced a 500% increase; Ansara Brothers Real Estate in Farmington Hills saw a 492% increase; and an accountant in Southfield, was faced with a 1,300% increase.
The remedy is a flat corporate tax of 6%. A flat corporate income tax of 6%, with a reasonable exclusion for small businesses, will amount to a $1.5 billion tax reduction on Michigan businesses – $1.5 billion more back in the hands of employers who will be able to invest in Michigan and hire unemployed workers. A Tax Foundation study shows that for every $1 reduction in corporate taxes, wages increase $2.50 over 5 years. Rick Snyder will put in place “Value for Money” budgeting and other reforms that decrease spending, while giving citizens the quality services they deserve.
Rick Snyder is the leader who can reform Michigan’s tax system. Replacing the MBT with a fair corporate income tax is a simple solution, but one that career politicians do not have the will to implement. Rick Snyder knows that citizens and businesses create jobs, government doesn’t. He is the leader to get this job done.