This will be a fun post to explore happenings around the Nation.
It isn't often that Michigan is listed on any grouping of Business-Friendly areas. It is the attempts being made by Governor Rick Snyder to reform the business taxes in the state.
In last Friday's WSJ in the section Review & Outlook / Opinion / the Editorial "The State Business Tax Revolt"
address the movements by 10 states' Governors who are not waiting for the Federal entities to make up their collective minds.
In fact, as this editorial point out, though the Obama Administration 'talks to reform' there is not proposal as to "How".
Personally I am grateful for this since this is NOT a "one Size fits / works for all".
Each state has it's own particular situations & economy with which they must attend.
MUST is the word for all of them & each state knows what will work for their area.
The listing below is alphabetical, not in order of importance.
The Proposed Changes to the State Corporate Tax:
...Arizona = Cut rate to 4.0 from 7.5%
...Alabama = Eliminate capital gains tax on new investment
...Florida = Phase out corporate income tax
...Georgia = Cut rate to 4 from 6% and broaden base
...Iowa = Cut rate to 6 from 12 %
...Michigan = Replace gross receipts tax with 6% flat corporate tax
...North Dakota = Cut tax to 4.9 from 6.4%
...Ohio = Capital gains tax cut
...Pennsylvania = Replace corporate tax with new sales tax
...South Carolina = Eliminate corporate tax
As you can see, each state had made decisions based upon their individual needs & expected results. What may work in Ohio, will not work in other states. The same can be said for each of the 10 states on the list.
Michigan has proposed changes to both Corporate & Small business taxes.
If "Jobs" are the answer, then those who provide the jobs must be able to do so AND at the same time make the profits that will allow for 'continued' growth.
The Editorial does state the following " Our preference , which is supported by most of the economic evidence, is that cutting personal and small business income tax should be the highest tax priority for states."
They do on to state that "...workers also bear the cost of excessive corporate taxes".
Further, "Businesses in high tax states invest less...and this leads to lower productivity and eventually lower average pay for workers"
Economic evidence can be misleading as well as informative...somehow it needs to be clear on the fact that no one will invest in new business, expansion, nor hiring IF they are allowed no profits. Why would anyone enter the field of corporate or small business areas if they are to be non-profit organizations.
The last time an honest study was reported, it was that of :
' ...the poor do NOT hire others.."
...the profit making entities do have the wherewithal to invest in, engage with, & expand their workforces.
...Markets will dictate what is needed & desired by the consumer
We will always find those [in both life & business ] who only want to fleece, scam & ruin others. These can come from all walks of life, both in the business & service areas.
Keep tuned to see how these individual new governors & / or other governors handle the budgets in all of the states.
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