TABLE 3

Tax Burden Ratios For Michigan Industries

Industry

Tax Liability

Adjusted Tax Base

Ratio: Tax Liability to Adjusted Tax Base

Agriculture

1,830,107

130,546,776

0.0140

Mining

3,471,179

259,275,339

0.0134

Construction

32,642,134

2,237,827,202

0.0146

Other Durable Manufacturers

60,346,853

3,229,543,856

0.0187

Non-Durable Manufacturers

74,610,988

3,606,992,660

0.0207

Primary Metal Industries

24,380,936

1,316,492,443

0.0185

Fabricated Metal Industries

28,633,488

1,570,412,992

0.0182

Machinery-Except Electrical

37,756,652

2,064,102,691

0.0183

Transportation Equipment

124,037,723

7,188,965,137

0.0173

Transportation

3,795,374

211,251,883

0.0180

Communication & Utilities

13,022,630

581,721,184

0.0224

Wholesale Trade

33,896,755

1,752,835,773

0.0193

Retail Trade

158,087,141

9,877,218,856

0.0160

Finance, Real Estate & Insurance

32,123,947

957,616,540

0.0335

Services

102,368,436

6,848,594,769

0.0149

All Industries Sum

731004343

41833398101

0.0175

Size Weighted Mean

96105592

5978482481

0.0180

Simple Mean

48733623

2788893206

0.0185

About Simple Mean Standard Deviation

45259224

2838308037

0.0047

Source: Author’s calculations from Michigan Department of the Treasury data.


TABLE 4

The Single Business Tax Burden on Michigan Industries SBT Data for Michigan Industries, 1980-81

#

Industry

Size

Tax Liability

Business Income*

Adjusted Tax Base

Ratio: Tax Liability to Adjusted Tax Base

Ratio: Tax Liability to Business Income**

1

Agriculture

1278

$1,830,107

($12,602,299)

$130,546,776

0.0140

1.0000

2

Mining

650

$3,471,179

$27,191,969

$259,275,339

0.0134

0.1277

3

Construction

10751

$32,642,134

$101,594,020

$2,237,827,202

0.0146

0.3213

4

Other Durable Manufacturers

3884

$60,346,853

$438,663,253

$3,229,543,856

0.0187

0.1376

5

Non-Durable Manufacturers

2645

$74,610,988

$1,003,399,373

$3,606,992,660

0.0207

0.0744

6

Primary Metal Industries

504

$24,380,936

$91,085,053

$1,316,492,443

0.0185

0.2677

7

Fabricated Metal Industries

1765

$28,633,488

$171,215,354

$1,570,412,992

0.0182

0.1672

8

Machinery-Except Electrical

2118

$37,756,652

$329,437,362

$2,064,102,691

0.0183

0.1146

9

Transportation Equipment

438

$124,037,723

($1,093,328,495)

$7,188,965,137

0.0173

1.0000

10

Transportation

2062

$3,795,374

($118,151,923)

$211,251,883

0.0180

1.0000

11

Communication & Utilities

743

$13,022,630

($20,903,441)

$581,721,184

0.0224

1.0000

12

Wholesale Trade

4152

$33,896,755

$442,610,720

$1,752,835,773

0.0193

0.0766

13

Retail Trade

40183

$158,087,141

$890,310,451

$9,877,218,856

0.0160

0.1776

14

Finance, Real Estate, & Insurance

13965

$32,123,947

($52,666,508)

$957,616,540

0.0335

1.0000

15

Services

38095

$102,368,436

$1,222,578,432

$6,848,594,769

0.0149

0.0837

All Industries Sum

123233

$731,004,343

$3,420,433,321

$41,833,398,101

0.0175

0.2137

Size Weighted Mean

NA

$96,105,592

$723,922,000

$5,978,482,481

0.0180

NA

Simple Mean

8216

$48,733,623

$228,028,888

$2,788,893,207

0.0185

NA

About Simple Mean Standard Deviation

12697

$45,259,224

$533,693,460

$2,838,308,037

0.0047

NA

*Business Income data contains non-sample firms; overestimates Business Income for each category.

**Ratio constrained to be nonnegative, less than one; if denominator is negative, evaluated at 1.0. Ratio is an underestimate of true ratio because of overestimated denominator.

Source: Author's calculations from Michigan Department of Treasury data


TABLE 5

Comparison with Treasury Analysis of Tax Burdens

Industry

Ratio: Tax Liability to Michigan Tax Base

Ratio: Tax Liability to Adjusted Tax Base

Agriculture

0.0120

0.0140

Mining

0.0100

0.0134

Construction

0.0134

0.0146

Other Durable Manufacturers

0.0165

0.0187

Non-Durable Manufacturers

0.0168

0.0207

Primary Metal Industries

0.0167

0.0185

Fabricated Metal Industries

0.0165

0.0182

Machinery- Except Electrical

0.0163

0.0183

Transportation Equipment

0.0112

0.0173

Transportation

0.0115

0.0180

Communication &Utilities

0.0133

0.0224

Wholesale Trade

0.0172

0.0193

Retail Trade

0.0143

0.0160

Finance, Real Estate & Insurance

0.0125

0.0335

Services

0.0127

0.0149

All Industries Sum

0.0139

0.0175

Size Weighted Mean

0.0137

0.0180

Simple Mean

0.0141

0.0185

About Simple Mean Standard Deviation

0.0023

0.0047

Source: Author’s calculations from Michigan Department of the Treasury data.