New data from the U.S. Census Bureau show that state and local government tax burden increased from 2006 to 2007. Michigan workers pay on average $8,691 in property, sales, income and other taxes. This is a one-year increase of 5.9 percent.
Michigan state and local governments rank above average in tax burdens[i] by many measures.
- 18th in taxes as a percentage of Gross Domestic Product (9.8 percent)
- 24th in taxes as a percentage of personal income (10.7 percent)
- 20th in taxes per job ($8,691)
- 29th in taxes per capita ($3,691)
Michigan state and local governments also receive revenues from sources apart from taxes. Compiling all of government revenues - from water fees to state college tuition - gives an indication over the size of state and local governments. The data indicates the revenue of Michigan's state and local governments[ii] combined represent a larger portion of the state's economy than average.
- 12th as a percentage of Gross Domestic Product (20.6 percent)
- 16th as a percentage of personal income (22.6 percent)
- 13th in government revenues per job ($18,321)
- 27th in government revenues per capita ($7,782)
See this for last year's rankings.
No one should be surprised after reading this (Michigan Education Association for more tax revenue) that Michigan spends a greater than average proportion of all state and local government revenues for education - 40.6 percent. In fact, only Vermont spends more.
[i] These figures include revenue from all state and local government taxes - income, property, sales, business and all other taxes.
[ii] These figures include all state and local government revenue minus money from the federal government.