Ask your state legislator in Michigan about the state's new business tax (MI Business Tax) and whether it's driving more of our businesses to the state of Indiana.
The Michigan Legislature enacted the new tax to replace its old Single Business Tax last year after a prolonged fight over budget cuts and replacement revenue.
In a story yesterday, the Detroit Free Press said the net effect of this new effort to take tax burden off manufacturers would be to make our low-tax neighbor Indiana more attractive to service oriented businesses.
Here are examples of how some businesses in the state are affected:
- The Ansara Restaurant Group near Detroit owns 20 Red Robin restaurants in Michigan and it will see a 62 % increase in its state tax payments from $323,875 under the old system to $526,020 under the MBT.
- A Southfield accountant had paid $1,000 under the old system and under the new will pay $14,000.
- Michigan's premiere Christmas store, Bronners in Frankenmuth will pay about 500% more under the new MBT.
Are these examples in the Free Press story atypical?
How are other service businesses affected?
Is the Michigan State Chamber of Commerce losing its bite and influence in the State Legislature?