Changes in Michigan's business tax move state to 12th 'friendliest' on U.S. list
How appealing is Michigan to business leaders?
The state is now No. 12 in the U.S. in a national ranking of tax-friendly states, according to a report in the Detroit News.
The Legislature replaced it with a 6 percent corporate income tax that exempts most small businesses, equaling an estimated business tax cut of about $1.7 billion.
According to previous AnnArbor.com reports:
Now, most small business owners in Michigan will only pay taxes on their business profits through their personal income tax return, where they're taxed at a flat rate of 4.35 percent.
In the end, the Senate split evenly on the vote — and Lt. Gov. Brian Calley had to cast a vote to break the tie.
To pay for the business tax cut, the Legislature also approved Snyder's recommended phase-in pension tax, a massive reduction in tax credits for the poor and other income tax code changes.
According to Wednesday's Detroit News report, the initiative paid off in perception across the U.S.: Michigan is now viewed as more competitive.