Changes will make Michigan more competetive
The Michigan Business Tax will soon be no more as Gov. Rick Snyder signed his tax reform package into law Wednesday. The bill replaces the Michigan Business Tax with a 6 percent corporate income tax. The state will also end its business tax credit regime, much of which created an unfair playing field for Michigan businesses.
The law makes Michigan more competitive nationally and limits a substantial piece of the burden government places on the state’s job providers.
The reform package also freezes the phase-down of the income tax rate and eliminates a number of exemptions and credits, including a major alteration of the state’s pension income exemptions. The state expects to draw $334 million in additional revenue by lowering pension exemptions. This part of the tax change was ultimately unneeded.
But the package on whole makes Michigan a better place to do business, something the state has sorely needed.