Revenues Down

Since 2000, state tax revenues from personal income and business taxes have declined and sales/use tax revenues have been flat – even with the 2007 tax increases.

Even with the 22% Michigan Business Tax surcharge and personal income tax increases, state tax revenues will decline by at least 11.5% from Fiscal Year 2008 and Fiscal Year 2010. In 2010, either spending must be cut or new revenue must be found to balance Michigan’s budget.