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Business Friendly States.....Michigan listed among them

By
Real Estate Agent

 



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.

       

 

Posted by


Live, Learn, Love, & always remember to Laugh!

 
a Keyless start....a Forward Looking VIEW from the DASH; Join the RIDE 


Barb & Sal

Comments (9)

Ellen Caruso
Daniel Gale Sotheby's International Realty - Glen Head, NY

Besides a business friendly state...I'll take one thats hiring these days, and getting the economy back in shape!

Feb 28, 2011 11:56 AM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

Barb and Sal - cutting taxes is only one part of the equation ..... the spending cuts that have to be associated with those tax cuts could be more harmful than not cutting taxes ..... here's hoping they get their priorities right when it comes to spending cuts.

Feb 28, 2011 03:28 PM
Laura Giannotta
Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ
Your Realtor Down the Shore!

Barb- I knew my beloved Garden State would not be on that list!  Maybe someday, unfortunately not in the near future!

Feb 28, 2011 10:03 PM
Barb & Sal Dragotta
Macomb, MI
Macomb County Michigan

Hi...this is Barb; last night I totally lost control of this site in the Rain. Didn't know that it posted at all.  was in the process of clicking on where to post & viola`--lost the site.  Was ghoing to edit, but since it was up afterall will leave it as it is.

Mar 01, 2011 02:34 AM
Barb & Sal Dragotta
Macomb, MI
Macomb County Michigan

Ellen...agree !  When the jobs, permanent rather than seasonal become part of the picture, then I will start believing.  thanks for your comment.  Have a great week.

Barb

Mar 01, 2011 02:37 AM
Barb & Sal Dragotta
Macomb, MI
Macomb County Michigan

Kathy....That is the rub...MI's budget calls for "Cuts"--that is where we will see just how the individual groups here will actually play together in the sand-box.  Cuts in spending must taker place across the board. This time with a governor who did not "cut his teeth in politics", but instead spent his years in the Business arena--hoping for real spending re-do.
We are in the "cuts" section-though it pains, it is true that we are old & by many considered non-productive.  so be it.  We ARE old, can't fight the passage of years...they are and do.  Not ready to give in or up, so....!!!
thanks for your comment.  Have a great week.

Barb   

Mar 01, 2011 02:43 AM
Barb & Sal Dragotta
Macomb, MI
Macomb County Michigan

Laura....NJ not on the list did not register with me; just  typed them as they were listed in the WSJ.  That is interesting as I thought the industry [s] there were up & growing.  Perhaps the state budget there did not get posted yet or the corporate taxes are not impeding growth.  who knows. It was enough that I saw Michigan on the list--a long time coming.  Our hope is that the groups in our state will see that business must be supported and, as Kathy points out, spending cuts must go hand in hand.  Thanks for your comment.  Have a great week.

Barb

Mar 01, 2011 02:47 AM
Beth Larsen
RE/MAX Sedona - Sedona, AZ
Sedona Arizona

What a great post Barb, and it really makes me happy to see Arizona on the list of those being pro-active to improve the business climate. I'll bet you're glad Michigan's on there too.

Boy, do we ever live in interesting times!

Mar 01, 2011 06:04 AM
Barb & Sal Dragotta
Macomb, MI
Macomb County Michigan

Beth...you are so right...yes, we are happy to see that Michigan is joining with others who see the Need for & Benefits of being Job / Business Friendly.
These are very interesting times; my problem revolves around the difficulty in 'getting the new Score-Cards. LOL
Have a great week

Barb

Mar 01, 2011 06:20 AM