Further evidence that Gov. Snyder's huge tax cut for businesses has
had no noticeable impact on Michigan’s perceived economic health: CNBC’s annual ranking
of the best and worst states for business shows Michigan edging up from 34th
in 2011 to 33rd in 2012.
Despite a new, simple corporate income tax of 6 percent –
representing about a 60 percent reduction in corporate taxes compared to the old
system – Michigan is still ranked below average in the category “cost of
business.” Let’s remember that most small companies now pay no state business taxes
CNBC, the cable TV business channel, rates each state in 10
categories and then gives all 50 states an overall score.
The Michigan scores shows that part of the price for that
big tax cut was a sharp reduction in funding for K-12 schools and public universities,
which appears to have been a dumb move. While the low business tax rate did not
improve Michigan’s overall image it did cause us to drop from 34th
to 38th in the education category, behind Arkansas, West Virginia
and Kentucky, and just ahead of Alabama and Mississippi.
Michigan’s best rating? That was, by far, our 12th
place spot in the cost of living category. No doubt our state’s dirt-cheap home
prices played a major role in that calculation.
You can read a whole lot more here.