Those Dirty Rotten Taxes
It’s funny how tax codes explain a lot. I’m doing this state tax policy analysis for PRI. On the Tax Foundation’s list of state corporate income tax rates, they have notes about Miscellaneous stuff. Here’s the extra info on Michigan, besides its 4.95% corporate income tax:
There is an additional modified gross receipts tax (sales minus purchases from other firms) at a rate of 0.8%. The income and gross receipts taxes are subject to a 21.99% surtax on the calculated liability, with the maximum surtax being $6 million. Banks pay a tax on net worth at a rate of 0.235%.
In case you don’t know, Michigan’s economy isn’t so hot right now. (In fairness, Nevada and Florida also have awful unemployment, yet their tax codes are relatively decent, so taxes aren’t the whole story. Still Michigan’s not exactly welcoming businesses in.)
