Memo 1059 ( December 2001 ) 8 pages
Tax Revenue Comparison: Michigan and the U.S. Average
Estimates of 1999 revenues of state and local government in the 50 states and the District of Columbia recently released by the U.S. Department of Commerce, Bureau of Census provides an opportunity to examine Michigan’s comparitive tax ranking 5 years after the changes brought about by Proposal A of 1994. These data show that Michigan total state and local tax revenues were close to the U.S. average in 1999, unlike years prior to 1994 when Michigan taxed its residents at above average levels. Further analysis, evident by comparing 1999 data with data from recent years, shows that some of the interstate competitiveness Michigan gained by cutting property tax rates and capping assessment increases has eroded since 1994. Finally, Proposal A has been successful in creating greater balance among the property, sales, and income taxes.