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Study

C. Advantages and Disadvantages of the Single Business Tax

By Patrick L. Anderson, published on Nov. 1, 1987

Three advantages cited in the 1985 Treasury Report are of interest in this inquiry: comprehensiveness, revenue stability across the economic cycle, and better treatment of capital investment.

SKU: S1987-02

The Single Business Tax Burden on Michigan Industries

  • Executive Summary
  • I. Introduction
  • II. The Single Business Tax
    • A. History of the Tax
    • B. The SBT: A Consumption-Based Value-Added Tax
    • C. Advantages and Disadvantages of the Single Business Tax
      • 1. Comprehensiveness of the Single Business Tax System
      • 2. Cyclicality of the VAT
    • D. The SBT and Capital Investment
    • E. The SBT and the Capital/Labor Decision of the Firm
    • F. Accounting for Capital Expenditures Under the SBT
  • III. Methodology and Analysis: Relative SBT Burdens for Different Industries
  • IV. Results
  • Endnotes
  • About the Author

More by Patrick L. Anderson

Time for Another State Tax Cut: It's the Law
The Universal Tuition Tax Credit: A Proposal to Advance Parental Choice in Education

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