Reform #11: Cut the Michigan Business Tax, a.k.a. “Jobs Tax” by 50%- Then Eliminate It
(from “Putting Michigan Back to Work, The First Steps”)

11: Cut the Michigan Business Tax

Jobs are the number one issue facing Michigan’s next Governor. Michigan has the highest unemployment rate in the nation, so the next Governor needs to bring jobs and job-providers back to the State. Mike Cox’s first step in January 2011 is to cut the Michigan Business Tax by 50% and then phase it out completely.

The simple truth is other states are taking our jobs through lower tax rates. According to the Tax Foundation, Michigan has the 3rd worst business tax structure in the United States causing high unemployment and a lack of diversity in our economy. Recently, Chief Executive Magazine surveyed over 500 national business leaders and found that Michigan was judged the 3rd worst place to do business. As one executive told the magazine, Michigan is “an absolute regulatory and tax disaster.”

As Governor, Mike Cox will move quickly to change this high-tax perception by enacting $2 billion in tax cuts. Mike Cox will cut the Michigan Business Tax – the job killing tax- in half. This one move takes us from the 3rd worst business tax structure in the country to 7th best. This tax cut is one part of a home-grown stimulus that – combined with eliminating the Granholm-Cherry income tax hikes of 2007 – would free up $2 billion dollars for Michigan businesses and citizens to invest and grow our economy. We must send a message to the rest of the country that we are open for business, or more importantly, open to job makers! A new tax structure will allow the rest of the country to see our great universities, skilled work force, Midwestern work ethic, and awe-inspiring natural beauty. Simply put, this bold tax cut allows Michigan to compete again and to stop the flow of jobs and people out of Michigan.