Let's discuss the SBT (single business tax)
Governor Granholm has vetoed the repeal of the SBT, unless revenues are found to replace it. I agree wholeheartedly.
It is interesting that in 2005, Michigan has been ranked in the top 5 states that are the "friendliest states for small business".
SBSC
Another Bureau of Economic Analyses, Department of Commerce and Tax Foundation calculation shows our total state local tax burden to be less than the national average in 2005.
DeVos, and the Republicans say we have one of the worst tax climates for small business, yet other studies speak of all the other elements of importance to starting a business in a given state.
On the Tax Foundation site which supports dismantling the business taxes on principle, they concede that others do not agree.....this quote is from their site
"Fisher finds support from Robert Tannenwald of the Boston Federal Reserve who argues that taxes are not as important to businesses as public expenditures. Tannenwald compares twenty-two states by measuring the after-tax rate of return to cash flow of a new facility built by a representative firm in each state. This very different approach attempts to compute the marginal effective tax rate (METR) of a hypothetical firm and yields results that make taxes appear trivial.
Tannenwald asserts that “while interjurisdictional rivalry is inducing states to cut taxes, demand is rising for state and local services such as education, health care, and law enforcement.” He concludes that business taxes exert only a small, highly uncertain effect on capital spending. States may be more likely to stimulate their economy by enhancing public services valued by business (Tannenwald 1996)."
Tax Foundation
What is needed for any state to stay fiscally healthy and attract business is an educated work force--Granholm has just signed her initiative for mandatory subjects in highschool, including math, science, the arts, social studies, and language. (It is unbelievable that only civics has been a requirement for graduation). Those high paying manufacturing jobs are not coming back, but many new jobs will be available for the states that educate their workforce and enhance
health care, law enforcement, and the pleasant living environment that are often mentioned as important for attracting business.
The fastest growth in industries nationally from 2004-2014 is projected to be
Home health care services 69.5%
Management, scientific, and technical consulting services 60.5%
Employment services 45.5%
Offices of physicians 37.0%
Colleges, universities, and professional schools, private 34.3%
Bureau of Labor Statistics
These are all non-outsourcing jobs, and require a workforce prepared for the future.
So what do you think would best improve the business climate locally and statewide? And what sorts of jobs do you see growing successfully Up North?
It is interesting that in 2005, Michigan has been ranked in the top 5 states that are the "friendliest states for small business".
SBSC
Another Bureau of Economic Analyses, Department of Commerce and Tax Foundation calculation shows our total state local tax burden to be less than the national average in 2005.
DeVos, and the Republicans say we have one of the worst tax climates for small business, yet other studies speak of all the other elements of importance to starting a business in a given state.
On the Tax Foundation site which supports dismantling the business taxes on principle, they concede that others do not agree.....this quote is from their site
"Fisher finds support from Robert Tannenwald of the Boston Federal Reserve who argues that taxes are not as important to businesses as public expenditures. Tannenwald compares twenty-two states by measuring the after-tax rate of return to cash flow of a new facility built by a representative firm in each state. This very different approach attempts to compute the marginal effective tax rate (METR) of a hypothetical firm and yields results that make taxes appear trivial.
Tannenwald asserts that “while interjurisdictional rivalry is inducing states to cut taxes, demand is rising for state and local services such as education, health care, and law enforcement.” He concludes that business taxes exert only a small, highly uncertain effect on capital spending. States may be more likely to stimulate their economy by enhancing public services valued by business (Tannenwald 1996)."
Tax Foundation
What is needed for any state to stay fiscally healthy and attract business is an educated work force--Granholm has just signed her initiative for mandatory subjects in highschool, including math, science, the arts, social studies, and language. (It is unbelievable that only civics has been a requirement for graduation). Those high paying manufacturing jobs are not coming back, but many new jobs will be available for the states that educate their workforce and enhance
health care, law enforcement, and the pleasant living environment that are often mentioned as important for attracting business.
The fastest growth in industries nationally from 2004-2014 is projected to be
Home health care services 69.5%
Management, scientific, and technical consulting services 60.5%
Employment services 45.5%
Offices of physicians 37.0%
Colleges, universities, and professional schools, private 34.3%
Bureau of Labor Statistics
These are all non-outsourcing jobs, and require a workforce prepared for the future.
So what do you think would best improve the business climate locally and statewide? And what sorts of jobs do you see growing successfully Up North?
posted by Anne Damm at 2:58 PM
1 Comments:
I was happy to see that Governor Granholm vetoed the Republicans attempt to repeal the SBT 2 years prior to its planned expiration. Our state has been struggling to provide basic services to our citizens and cannot afford to lose revenues without a plan to replace them.
If there is a true desire to help businesses and people, our country should focus on universal health care. Endless tax cuts are not the answer!
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