Business tax climate warms, but are funds for services at risk?

Capital News Service
LANSING — A new report suggests the repeal of the Michigan Business Tax (MBT) dramatically boosted the Michigan’s tax climate, but many officials and experts say there’s still room for improvement in the state’s tax policy. The Tax Foundation, a nonpartisan group in Washington, ranked Michigan 12th in the nation in overall business tax climate, a 7-point jump from its rank last year. The state also saw the largest rise in corporate business tax climate, moving from 49th to 7th in one year. The report based its findings on an evaluation of each state’s tax structure. Compared to other Midwest states, the foundation said Michigan’s business climate is one of the best — Illinois ranked 29th while Ohio and Wisconsin came in at 39th and 43rd respectively.

Experts dispute glowing tax ranking

Capital News Service
LANSING – Economic experts are divided after a tax advocacy group’s study jumped Michigan from 49th to 7th place in corporate tax rankings. The Tax Foundation, a nonprofit research group based in Washington D.C., also cited the state’s upgrade from 18th to 12th in overall business climate. According to Mark Robyn, an economist with Tax Foundation, the criteria for a state’s positive ranking include low taxes and a broad tax base while keeping tax policy as simple as can be. “Essentially, the ranking is intended to indicate how business friendly state corporate taxes are,” Robyn said. Robyn noted the foundation’s decision to update Michigan’s ranking is based on the state’s current tax policy, which went into effect Jan.