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Is Michigan Worse Off Or Better Without Business Tax

Getty Images by David Banks

Under Governor Granholm Michigan had the highest unemployment rate in the country from April 2006 until May 2010, topping out at 14.2% in August 2009.

During the lost decade Michigan;s state government shut down due to a budget shortfall of $2.8 billion and Michigan lost approximately 600,000 jobs while the state had the 49th highest business tax.

So what did Governor Snyder and the Republican legislature do, they replace the 49th worse business tax environment (the MBT) with a 6% flat tax.

What happened?

  • We went from the 49th worse business tax environment to the 7th best in the nation by February 2012.
  • Our unemployment rate fell from 14.2 % to 7.4%
  • We added 255,000 jobs
  • Our entrepreneurial climate in the state went from 41st best to 6th in the nation
  • Our states business roundtable projected that Michigan’s economy will continue to grow in the next 6 to 18 months and out perform the nation during that time

Does that sound like it worked?

Throughout his time as a Michigan Legislature the democrat candidate for Governor Mark Schauer, voted for or sponsored legislation supporting higher taxes over 40 times.  When he then went on to become a Congressmen he voted for Cap and Trade, which, at the time, the Wall Street Journal called “the biggest tax in American history.”  He then voted for and left us with ObamaCare, a law that equals to at least $400 billion in tax hikes for Americans.

Can you even compare the two?

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