New study shows substantial increase in state tax payments by small businesses
May 31, 2016
A new report released today by Anderson Economic Group shows that owners of small businesses and other so-called pass through entities paid $702 million in income taxes on their profits in 2014, compared to $464 million in 2011 – a 51 percent increase.
“This highly credible study by Anderson Economic Group (which has been collecting data on business taxes paid in all 50 states for 10 years using a documented and objective methodology) confirms that replacing the convoluted Michigan Business Tax in 2012 with a Corporate Income Tax was a wise decision that has helped boost small business economic performance and create jobs,” says Small Business Association of Michigan President and CEO Rob Fowler. “Exempting small businesses from the Corporate Income Tax removed the unfair burden of double taxation that afflicted many of them under the Single Business Tax and the Michigan Business Tax. This gave entrepreneurs more opportunity to grow, prosper and provide local employment. The report provides evidence that the small business economy has grown and small businesses are paying not only a larger amount of state income taxes but also significant amounts of sales, property and unemployment taxes.”
SBAM sponsored the Anderson Economic Group report along with the Michigan Chamber of Commerce, Business Leaders for Michigan, the National Federation of Independent Businesses, Michigan Retailers Association and Michigan Realtors.