Things that make you go hmm.
Last October, Florida was rated the 5th-best state for “tax climate” by the Tax Foundation. Michigan was rated No. 20. Part of Florida’s appeal, apparently, is that it does not have an individual income tax.
So, why did Florida’s population actually drop in 2008 by an estimated 58,000 people?
If Michigan’s tax structure and general hostility to business are behind the state’s economic woes, why is a state often touted as an antithesis to Michigan losing population?
Granted, it’s not at the same pace. The Detroit News put Michigan’s 2008 population loss at 109,000 earlier this year. Both states are being savaged by the mortgage/foreclosure crisis, albeit for different reasons.
But if tax structures matter (and the Tax Foundation argues “Taxes matter to business. Taxes affect business decisions, job creation and retention, plant location, competitiveness, and the long-term health of a state’s economy.”), shouldn’t Florida be reeling in business and people as unwise states such as Michigan collapse?
If you look at the Tax Foundation map, a striking disparity emerges. At No. 20, Michigan’s tax structure is deemed better than Illinois’ (23rd), Wisconsin’s (38th), Minnesota’s (41st) and Ohio’s (47th). Only Indiana at 14th is rated better in the region. Yet, Michigan’s tax policies are holding the state back?
Hmmm.
