Business leaders in Michigan have high hopes that the Trump administration can bring reforms to taxes.
“We've long held that there needs to be corporate tax reform. There are different proposals on the table, but when America has the highest corporate tax rate of the developed world, that's not a good thing. That's not something that encourages businesses to reinvest here and create good jobs. I think that's got to be right at the top of the priority list,” says Doug Rothwell, the President and C-E-O of Business Leaders for Michigan.
Although Rothwell says corporate taxes in America are higher than elsewhere, an annual staff report from Congress’ Joint Committee on Taxation notes that corporations in America enjoyed more than $1.3 trillion in federal tax breaks last year alone.
A recent analysis by Forbes Magazine points out that in Michigan, the state owes about $9.4 billion in tax credits to companies, a liability that costs the state about $500 million a year.