Brought to you by the Michigan Economic Development Corporation, a public-private partnership between the state and local communities promoting smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the MEDC's initiatives and programs, visit the Web site at MichiganAdvantage.org
On Wednesday, May 25, 2011, Gov. Rick Snyder signed into law $1.7-billion in business tax cuts effective next January 1, spurring new job creation and making the state competitive once again for new business investment.
Michigan's tax ranking is vastly improved, from 48th to 22nd on the Tax Foundation's state Corporate Tax Index and to 13th overall from 17th previously.
"The Michigan Business Tax was a disaster - it was not only unfair, it was a dumb tax," Snyder said before signing the new tax bill into law. "This is going to make us competitive, this will create jobs. And that's exciting."
Currently about 136,000 businesses pay the MBT, but the Department of Treasury estimates only about 41,000 businesses will pay the 6 percent corporate income tax that will replace it.
The new business tax will be flat with minimal exemptions and exceptions. It will be the first time in decades that Michigan business owners and managers will be able to calculate their taxes on the back of an envelope.