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Reason Foundation

Up is Down, Black is White

Damon Chetson
June 20, 2007, 6:57pm

Michigan's Single Business Tax, a $1.9 billion tax ranked by the Tax Foundation as the most burdensome corporate tax in the nation, is set to expire at the end of the year. Relief at last! Not so fast. From the state's governor, Jennifer Granholm, comes this remarkable statement announcing the creation of a new corporate tax:
With our new Michigan Business Tax, we will be even better positioned to bring more promising, job-creating projects to Michigan," Granholm said. "But now we need further progress on solving this budget crisis so that we can continue to push forward with Michigan's aggressive economic plan.
Apparently the laws of economics operate differently in Michigan. While in the rest of the world new taxes generally kill job creation, all things being equal, in Michigan, according to Governor Granholm, a new business tax is part of an aggressive economic plan!

Granholm has presided over one of the worst economic environments in the country. According to the Mackinac Center, Michigan has lost more than 200,000 jobs since 2000.

While other states have recognized the need to lower the tax burden on corporations in order to spur growth, Michigan has chosen a different route. The state runs ads featuring actor Jeff Daniels, of "Dumb and Dumber" fame, touting the Michigan Economic Development Corporation, dubbed a Government Subsidy Machine by Mackinac.



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