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    Commentary:

    The Michigan Business Tax and its surcharge is one policy that has had many Michigan businesses angry for quite a while. It includes a 22 percent surcharge and a complicated web of tax incentives that desperately needs to be reevaluated to determine which ones work and which don't. Many want the tax repealed completely, including gubernatorial candidate Virg Bernero, but with the massive budget deficit looming for the next year we can't afford to just cut a source of revenue this big without a plan to replace it. Gubernatorial candidate Rick Snyder plans to repeal the tax as well, but he also plans to replace it with a flat rate 6% income tax. Regardless of which type of tax cut happens, it's going to require major structural budget changes, which may prove to be politically unpopular.

    . I think that one of the most important aspects of reforming the tax system is factoring in the idea of making up the revenue. As long as the new proposed tax can draw as much revenue as the current system then it can be taken into consideration. I think a good way to go about this is to implement a graduated income tax, which is a tax that has a rate that varies depending on a persons income. This idea has been proposed and shot down, but it is a good way to generate revenue while still getting rid of the highly unpopular tax incentives attached to the Michigan Business Tax.

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    About Us

    The Michigan Policy Network is a student-led public education and research program to report and organize news and information about the political process surrounding Michigan state policy issues. It is run out of the Department of Political Science at Michigan State University, with participation by students from the College of Social Science, the College of Communication, and James Madison College. 

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    Meet your Policy Fellow: Nicholas Biondolillo

    Nicholas Biondolillo is tax policy correspondent for the Michigan Policy Network. Nicholas is a first-year student in Engineering at Michigan State University.