Crain’s Detroit Business
Nov. 21, 2023
A think tank that assesses the tax climate in each state is bumping up its grade for Michigan.
The Tax Foundation, a Washington, D.C.-based nonprofit policy group, released its annual State Business Tax Climate Index report last month. Rather than focusing strictly on how much states levy, the report aims to evaluate how well tax systems are structured.
The criteria favors business-friendly models that minimize tax burdens for individuals and corporations. It emphasizes simplicity, transparency, neutrality and stability.
“The states that rank better on the index are generally states where businesses are more attracted for investment purposes,” said Tax Foundation senior policy Analyst Katherine Loughead. “They generally treat businesses more favorably.”
Michigan ranked No. 11 this year. That’s up one slot from last year and the closest it has been to making the Tax Foundation’s list of the top 10 most business-friendly states since 2014, when Republican Gov. Rick Snyder was in office.