The Great Tax State
Wednesday, March 23rd, 2005Compounding the problem is that Michigan is the only state to levy a de facto value added tax on its businesses. (That’s another similarity to Old Europe.) Called the Single Business Tax (SBT), this levy is applied to production. This means that any company that loses money or just manages to break even still often pays a hefty sum to the tax man just for the privilege of operating in Michigan. Hence, many don’t.
Change the Michigan tax law, please. For now any other corporations I start are going to be based in Nevada where there is no corporate tax. As an added benefit:
Your name never needs to appear on any public record relating to a corporation over which you might exert pretty much complete control, if only as the “whisper in the ear” of the Board of Directors.