Anderson Economic Group: PPT repeal would create jobs
LANSING— Reforming Michigan’s personal property tax (PPT) structure would create between 6 thousand and 15 thousand jobs, according to a study released by Anderson Economic Group (AEG) on Wednesday.
When combined with the new corporation income tax (CIT) and the elimination of individual income tax exemptions, the job growth rises to 19 thousand to 46 thousand jobs.
“If I had to sum up the findings of this study in one word, it would be ‘fantastic,’” said State Sen. Jack Brandenburg, R-Harrison Township. “The more people working the better off our state will be. I have been working very hard on the PPT bills, and the findings of this study will only make me work harder.”
The eight-bill PPT package is currently in the Senate Finance Committee, chaired by Brandenburg.
The AEG study also reported that due to increased business activity and other “dynamic effects” state and local revenues could increase by $155.3 million by 2015 and $384 million by 2025.
The study also predicts between $190 million and $450 million in business investments and between $430 million and $1 billion in business consumption.
“Michigan and Indiana are the only Great Lakes states that tax manufacturing equipment, putting Michigan at a serious competitive disadvantage,” Brandenburg said.
The report was commissioned by the Michigan Manufacturers Association (MMA). It concludes that the proposed reforms of the PPT would exempt around 60 percent of commercial and industrial parcels from the PPT starting in 2013. All eligible manufacturing personal property would be exempt by 2022.