Michigan Moves to 12th In Business Tax Ranking

The national Tax Foundation released a report Tuesday of the 2013 rankings of best business tax climates in the United States – with Michigan moving to 12^th overall. The mitten state was ranked 18^th in the 2012 report. Only Indiana, ranked 11^th overall, out-paced Michigan among Midwest states.

The most significant move was specifically for corporate ranking, from 49^th to 7^th, because of the replacement of the Michigan Business Tax (MBT) with the Corporate Income Tax (CIT).

The states with the best overall ranking for business tax climate in the report were Wyoming, South Dakota, Nevada, Alaska, Florida, Washington, New Hampshire, Montana, Texas and Utah.

Outside of the corporate rankings, Michigan ranked 7^th for sales tax, 11^th for personal income tax, 31^st for property taxes and 44^th for unemployment taxes.

posted by PAA Online , Friday, October 12, 2012 10:43 AM
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Unemployment Rates Up In Large Labor Markets

The Department of Technology, Management & Budget (DTMB) Labor Market Information system August unemployment rates for August paint a picture of some improvement, but still struggling communities for many of Michigan’s largest cities.

Detroit, Michigan’s largest city, has an estimated August jobless rate of just under 20 percent (19.6). The highest rates came from Highland Park and Pontiac, with 25.5 and 23.7 percent unemployment rates, respectively.

Although an increase from the lowest recent rates of the first quarter of 2012 when Highland park had a rate of 23.3 percent and Pontiac had a rate of 21.6 percent, the August numbers don’t touch the 2009 highs of 36.4 percent jobless in Highland Park and 35.2 percent in Pontiac.

The state’s lowest unemployment numbers came from the western Detroit suburbs of Northville (2.5 percent) and Plymouth (3.3 percent).

posted by PAA Online , 10:43 AM
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Blues Bills To See Action Next Week

Senate Bills 1293 and 1294, introduced by Senate Insurance Committee Chair Joe Hune (R-Hamburg), are scheduled for hearing before his committee next Tuesday, the day before the Legislature’s only session day prior to the November election.

Michigan Governor Rick Snyder announced his dramatic proposal to alter the state’s health insurance structure in early September. After years of urging by the Blues to revamp the regulation set forth in Public Act 350 of 1980, the Snyder Administration and the Legislature appear prepared to act before year’s end.

The difference now is the U.S. Supreme Court’s decision to uphold the vast majority of the Patient Protection and Affordable Care Act which will ultimately end Blue Cross’s position as the state’s insurer of last resort. Beginning in 2014, all insurers must accept all applicants regardless of pre-existing conditions.

The proposed reform would change the Blues into a nonprofit mutual company and treat it largely like any other insurer in the market. The company would lose its tax exempt status, with future rate adjustments being decided by the State’s insurance commission.

Further, the proposal calls for the Blues to pay $1.5 billion over 18 years into an independent nonprofit foundation working towards the overall improvement of the state’s health.

posted by PAA Online , 10:42 AM
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No Debate for Stabenow, Hoekstra

The debate on debates is over, and incumbent U.S. Senator Debbie Stabenow (D-Lansing) will not be debating challenger and former Republican U.S. Congressman Peter Hoekstra.

The two sides have been going back and forth for months as Mr. Hoekstra called for as many as six debates on commercial television networks, while Senator Stabenow has insisted on the traditional two debates, one at Grand Valley State University and one at the Detroit Economic Club. This tradition began in 1996 during the campaign between U.S. Senator Carl Levin (D-Detroit) and GOP nominee Ronna Romney.

With the talks breaking-down and Senator Stabenow’s campaign clearly stating that no debates will take place before the election, the finger-pointing continued but changed tunes into who is dodging whom. Trailing Senator Stabenow by sizable margins in most polls, Mr. Hoekstra appears to have the most to lose by not debating and losing the opportunity to confront the incumbent.

posted by PAA Online , 10:41 AM
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Last Week's Survey Results

The question in last week’s PAAdvisory asked how readers plan to vote on Proposal 1, the referendum on Public Act 4 of 2011, the Emergency Manager statute. Note: a “yes” vote is to keep PA 4, a “no” vote is to repeal the Act.

86 percent of respondents replied “yes” to keep the law. 14 percent replied “no.”

posted by PAA Online , 10:41 AM
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PAAdvisory Briefs

Ligon Joins Credit Union League

The Michigan Credit Union League and Affiliates has hired Ashley Ligon as a grassroots coordinator for the government relations team. Ms. Ligon is a former staff member to U.S. Representative Mike Rogers (R-Brighton), State Representative Matt Huuki (R-Atlantic Mine) and State Representative Rick Olson (R-York Township).

August Economic Activity Slows for Region

In its latest monthly index, the Federal Reserve Bank of Chicago found the Midwest region’s economic activity slowed in August to the lowest level since late 2009. The regions overall economic activity fell by 0.38 on the Fed’s index. Michigan showed growth in manufacturing and services, and declines in construction and consumer spending.

Consolidation Closer for Saugatuck and Douglas

The cities of Saugatuck and Douglas in Allegan County are one step closer to consolidation following the approval of their petition by the State Boundary Commission. The Department of Licensing and Regulatory Affairs (LARA) will issue a consolidation order which will be followed by a 45-day period for referendum petitions to be circulated and filed. The last municipal consolidation occurred in the early 1990s when several communities merged into Iron River.

posted by PAA Online , 10:39 AM
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Question of the Week 10/12/2012

posted by PAA Online , 10:12 AM
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