If Michigan Raises Business Taxes, Will They Still Come?
The Michigan state democrat lawmakers want to increase tax credits and deductions for families and students and raise taxes on businesses.
If it would work, I would be 100% behind it. But can it?
Can we raise taxes on businesses and still attract them to come to Michigan? Or, if they already exist here, expand?
I believe the evidence shows that we cannot. We have tried this before, and our business climate in Michigan was not very good. Again, evident by the fact that we had the highest unemployment rate of all the states for years.
The unemployment rate in Michigan was 3.9% in January of 2000, then came the governorship of Granholm and it spiked to 14.2%. I know she does not deserve all of the blame, but how much does her attitude and policies toward business deserve?
New Census bureau data, as reported by The Washington Times, on where we live and where we moved to in 2014 shows that the top seven states with the biggest percentage increase in in-migration from other states are in order: North Dakota, Nevada, South Carolina, Colorado, Florida, Arizona, and Texas. All of these states are Republican controlled, except Colorado, which is purple.
Meanwhile the data shows the leading exodus states of the continental states in percentage terms were: Alaska, New York, Illinois, Connecticut, New Mexico, New Jersey, and Kansas. All of these states are Democrat controlled, except Alaska and Kansas.
The latest "Rich States, Poor States" document published by ALEC (American Legislative Exchange Council) a state legislative organization, found that nearly 1,000 people each day are leaving blue states and entering red states.
As reported by the Detroit Free press, “House and Senate Democrats on Monday unveiled a $1-billion proposal to expand tax credits and deductions for families and college students, saying it would help reverse a shift in taxes away from corporations onto the middle class.”
Who pays those business taxes? The consumer does. That means you.
The Michigan democrat party “blueprint for Michigan families” calls for:
- A new $400-per-child tax credit for each child 13 years old or younger in households with incomes up to $100,000.
- A new dependent care tax credit, again for households earning up to $100,000, to offset the cost of child care or caring for elderly parents.
- Expansion of the Homestead Property Tax Credit so families with incomes up to $100,000 would qualify, up from $50,000 currently.
- Reinstating a senior deduction that provides a $2,300 income tax exemption for seniors 65 or older.
- A new College Affordability Tax Credit that allows an employed Michigan resident to claim an income tax credit of up to 50% of the amount paid on state or federal student loans. It would also allow businesses to claim tax credits for student loan payments made on behalf of employees.
As I said, if this new tax plan was to work, and by work I mean still improve our business climate keeping and attracting jobs to our state, I would be a proponent of the plan.
The problem is that the numbers across the country tell us it will not work.
Let’s discuss this today on my show, The Live with Renk show, which airs Monday through Friday 9 a.m. to noon, to let me know your thoughts at (269) 441-9595.
Or please feel free to start a discussion and write your thoughts in the comment section.