East Lansing, MI, April 24, 2017—Released today—A new nationwide study of state business tax burden by Anderson Economic Group shows that Michigan businesses paid $14.1 billion in state and local taxes in 2015. The study found that 8.0 percent of Michigan business profits went toward state and local taxes, representing the 16th lowest business tax burden in the nation, a drop from 12th the previous year. In 2014, Michigan businesses paid $13.4 billion in state and local taxes.
“Michigan dropped a bit in our rankings from last year, but it has maintained a low burden relative to the national average and remains much improved from its 2011 ranking of 32nd,” said Jason Horwitz, AEG director of economics and public policy.
Indiana has the fifth lowest tax burden of any state, with 7.0 percent of business profits going toward taxes, and Ohio has the 9th lowest burden at 7.3 percent. Michigan’s other neighboring states Wisconsin and Illinois rank 24th and 30th, respectively.
Anderson Economic Group’s 2017 Business Tax Burden Rankings is the eighth edition of an annual comprehensive report on the business tax burdens of all 50 states and the District of Columbia. The report shows Oklahoma, Oregon, and North Carolina leading the nation with the lowest business tax burdens, and Maine, Wyoming and North Dakota with the highest burdens. Since 2006, the AEG report has considered more than just corporate income taxes, addressing 11 different categories of taxes paid by business. Of these, property and sales taxes are the largest taxes borne by businesses.
“Some tax rankings order states based on the rate for a single tax or on a particular tax policy preference,” said Horwitz. “We estimate the actual amount of tax revenue collected from businesses across all types of business taxes.”
The rankings are based on an objective measure of business tax burden that allows employers, policymakers, and investors to compare business tax burdens in different states using a published and consistent methodology, and fully disclosed data sources.
About Anderson Economic Group
AEG has provided independent analysis of tax, business climate, and other policy issues for numerous US states, cities, counties, universities, businesses, trade associations, and unions since 1996. A number of reports, including past business tax burden studies, are available on the company’s web site: www.AndersonEconomicGroup.com. AEG has offices in East Lansing, Chicago, and New York.
CONTACT: Alyssa Rollins-Anderson Economic Group, LLC