SALT Report 3810 – “Business taxes are among several economic variables that are directly affecting Michigan’s tax collections, said Jay Wortley, director of the state treasury’s Office of Revenue and Tax Analysis.
He said a decline in U.S. corporate profits in the last two quarters of 2015 has affected corporate income tax collections. Sluggish retail sales and low fuel prices are contributing to a drop in expected sales tax collections. The impact of both tax programs could not be overcome despite an increase in individual income tax revenue caused by rising per-capita personal income, Wortley said.
Business tax revenue forecasts, in particular, were off by so much that the state Treasury Department can’t yet pinpoint the reason.”
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