Report: Michigan Tax Burden Lessens In New National Survey

EAST LANSING

– Oregon, Louisiana and North Carolina have the lowest tax burdens of the 50

states and the District of Columbia, while Alaska, North Dakota and West

Virginia the highest, so says Anderson Economic Group’s 2015 Business Tax

Burden Rankings. Michigan improved from

28^th in the survey a year ago to 23^rd today.

This report,

now in its sixth installment, compares the total amount of state and local

taxes businesses paid in each state in Fiscal Year 2013 to business’ pre-tax

operating margin in that year, a measure of the money businesses have available

to pay their taxes. The report considers more than just the corporate income

tax rate, addressing 11 different categories of taxes paid by business and

property taxes.

Legislators

and the public can overlook some of the most significant tax costs for

business, including sales taxes on goods and services purchased by businesses

and property taxes, both of which have a greater impact than corporate income

taxes.

AEG’s

rankings allow employers, policymakers, and investors to compare the tax

burdens for employers in different states using a published and consistent

methodology, and fully disclosed data sources.

AEG’s

ranking is based on an objective measure of tax burden. “We estimate the actual

amount of tax revenue collected from businesses across all types of business

taxes. Some tax rankings simply order states based on the rate for a single tax

or on the organization’s preferences for tax policy.” said Alexander Rosaen,

the report’s co-author and Director of Public Policy at AEG.

“Replacement

of the Michigan Business Tax with the new Corporate Income Tax has contributed

to Michigan’s improved ranking,” said Patrick Anderson, Executive editor and AEG

CEO. “Our analysis reflects a significant drop in gross receipts taxes, in

particular. Furthermore, Michigan’s business tax burden will continue to

decrease with the recent passage of PPT reforms.”

Report

co-author Jason Horwitz, a consultant based in AEG’s Chicago office, stated:

“Illinois’ business tax burden remains steady at just above the national

average. Relatively higher corporate income and public utilities taxes in

Illinois are offset, to an extent, by lower sales taxes due to a narrow sales

tax base. Also, the cost of unemployment insurance in the state remains high

after years of unemployment above the national average.”

AEG has

provided independent analysis of tax, business climate, and other policy issues

for numerous US states, universities, large corporations, businesses, trade

associations, labor unions, cities, and counties since 1996. AEG has offices in

East Lansing, Michigan and Chicago, Illinois.