I love this article because it provides some insight into the various tax laws that apply to business owners in Michigan. I’d love to know how you feel about that.
In the article, the author suggests that business owners should consider moving to Michigan because they get to avoid those Michigan business taxes. The author notes that in Michigan, Michigan business taxes are usually 15-25% or more. That’s a significant chunk of change and it makes it a lot harder to do business in Michigan. The taxes are levied on income, payroll, property, and certain kinds of investments. Many businesses in Michigan have to pay these taxes to ensure they don’t exceed their income limit.
That’s a good tip.
That the Michigan business tax law applies to all non-resident businesses has always been a concern for many Michigan business owners. This year, it’s a concern most. Many of them are planning to move their businesses to Michigan. The new tax law that goes into effect in January will require businesses to pay these taxes on gross receipts.
As a result of the new law, many Michigan businesses have been struggling to keep up with the tax burden. They’ve been forced to pay these taxes for many new businesses that are not Michigan businesses. Many people have been forced to leave their jobs. Others have had to file for bankruptcy. In the midst of all the chaos, our Michigan friends have been wondering if they’ll have to pay these new taxes.
When these new business taxes come in, that means that the state government is going to have to come up with money to fund schools and other public services. According to a report from the Michigan Department of Treasury, the state currently has $24.5 billion in tax revenue. That money is split between schools, public safety, and the judiciary. That money is not going to be enough to meet the costs of all the new taxes.
This is a very real concern. State lawmakers are proposing this in the next few months. The new taxes are designed to encourage more businesses to hire, make more money, and also help out government workers who are struggling to make ends meet. The state is proposing that taxes on corporate and personal income be higher for the first year, but by the end of the year that will be the same as the current tax rates.
If you don’t think the proposed state taxes will be enough to help out the government employees, don’t worry. Michigan businesses will be able to claim a credit for the taxes on their taxes. For instance, a restaurant owner who is paying a business tax on the income of their employees may claim a business credit equal to the portion of the income that they’ve already paid in taxes.
It’s a bit of a no-brainer as far as I am concerned, and I hope that the state will increase the rate of tax at least by just a little bit since most businesses will see a benefit.
I would like to see Michigan businesses pay more, but its not like they will be paying the increased tax rate themselves. I think the business tax rate should stay the same for the next 5-7 years.