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.