Background: If a new Michigan tax structure moves to a more profits-based tax, MMA believes the best tax policy is a low rate, broad-based tax. The tax should apply to all businesses. To help address non-corporate business structures, Michigan’s personal income tax should be amended to avoid double taxation of business income on Michigan business owners. The changes must ensure that any tax changes actually lower the tax burden on manufacturing and do not result in a tax increase on the largest sector of the Michigan economy.

MMA Position: The new business tax should be low rate and broad-based and apply to all businesses.