I keep seeing Michigan politicians patting each other on the back about the personal income tax going from 4.35% to 4.25% to 3.9. Then eliminated the “Business Tax” only to turn around and create a “Corporate Tax”. Then they try to explain how the 6% sales tax will sustain these “huge” decreases in revenue. None of these high taxes are truly necessary – just look at Wyoming and South Dakota.
A little information about Wyoming and their taxes:
- Wyoming sales tax rate is currently 4.0% with prescription drugs and groceries exempt from sales tax.
- Wyoming has no personal income tax.
- Wyoming has no corporate income tax.
A little information about South Dakota and their taxes:
- South Dakota sales tax rate is 4.0%.
- South Dakota has no corporate income tax.
- South Dakota has no personal income tax.
- South Dakota has no personal property tax.
- South Dakota has no business inventory tax.
- South Dakota has no inheritance tax.
Both of those states enjoy some of the lowest unemployment rates in the country because people and businesses get to keep more of their money. When people and businesses get to keep more of their own money, rather than let government take it from them and squander it, prosperity occurs. Businesses and people are more free to invest and use their money wisely.
Michigan politicians could learn something from this simple economics lesson.
Please share my message and help send me to Lansing this November so that I can present this lesson personally.