Michigan Business & Economy

Coverage from across Michigan and the state Capitol with the Michigan Public Radio Network and Interlochen Public Radio.

State Treasury projects $99 million revenue loss as business tax refunds increase

Michigan Public | By Stateside Staff

Published May 19, 2016 at 3:51 PM EDT

Companies in Michigan are increasing jobs, but are they paying their fair share of taxes to the state?

The Michigan Department of Treasury is projecting a $99 million net loss in revenue due to an increase of tax refunds to businesses across the state.

Larger companies in Michigan are cashing in tax credits after creating more jobs, leading to more employees who can pay their own taxes to the state. However, the deductions that companies take on their taxes not only strains Michigan's budget, but increases political tensions as lawmakers prepare to debate whether businesses are paying their fair share or not.

Detroit News business columnist Daniel Howes joined Cynthia Canty on Stateside to discuss the effects of the increased business tax refunds on the state's budget.