Opinion:

As many Michiganders, including Governor-elect Rick Snyder, would agree, one of the biggest obstacles facing Michigan businesses is the Michigan Business Tax. Created in 2007, the Michigan Business tax has placed an unnecessary burden on businesses in an already tough economy. Snyder has created a plan that would replace the Michigan business tax, which he calls the “worst business tax in the country”. He has instead proposed a flat-rate tax of 6% on businesses in the state that currently pay the Michigan Business Tax. Even small businesses currently paying an alternative profits tax will receive an exemption. This proposed move is to give a projected 1.5 billion dollar tax break to the businesses of Michigan.

In today’s economy, businesses are on their way to a slow recovery. One way to ensure this is to help create a better situation for our businesses. By applying a 6% flat tax rate, I think that all businesses will have a more fair chance of succeeding here in Michigan. When comparing Michigan’s corporate tax rates to those of other states, Michigan ranks 48^th. Other states with tax rates near 6% are all in the top ten of corporate tax index ratings. Clearly this is a sign that Michigan’s tax system needs to be reformed. Businesses in this state need easier ways to succeed, not more ways to succumb to bankruptcy.

Snyder’s plan promises to be a complete change of the government, taxes included. This plan is effective in the way that it guarantees easier taxes for Michigan’s businesses. An overhaul of the tax system could help significantly bring more business to Michigan. If we stay ranked as 48^th then it is guaranteed that the economy will be even slower to recover from this recession. If we can make the tax rate more competitive and affordable like other leading states it will help attract other businesses from outside of the state as well as give an incentive for current Michigan businesses to stay.

Source:

http://www.governorelectricksnyder.com/vision-plan/policy-central/eliminating-michigan-business-tax-mbt