10
MMA ’ s Manufacturing Agenda
Tax Policy
Creating a statewide business climate to allow manufacturers to remain globally competitive
Competing in the global economy means competing against manufacturers anywhere in the world based on price . Manufacturers cannot win if Michigan ’ s tax climate undermines their competitiveness .
Michigan is a manufacturing state . With a total output of $ 102.25 billion , manufacturing is the largest sector of the Michigan economy . The industry produces approximately 19 % of Michigan ’ s gross state product . With an average annual compensation of $ 79,320.10 per employee compared to just $ 48,632.03 for all other sectors , manufacturing delivers strong incomes for families .
The manufacturing sector brings additional dollars into the state and helps drive the state economy due to sheer volume of goods export to foreign countries ($ 55.35 billion , equal to 95.23 % of total goods exported from the state in 2018 ).
Unlike other sectors of the economy that compete with businesses down the street or across county or state lines , manufacturing competes globally with the lowest-cost operating locations in the world . State government must partner with manufacturers to ensure tax policies remain competitive against the ever-changing policies of locations in other states and around the world . This requires a regular comparison process to ensure tax rates , tax methods , tax adjudication or economic development incentives offered elsewhere are matched or improved upon in Michigan .
Like the arsenal of democracy during World War II , manufacturing responded again to battle COVID-19 by producing personal protective equipment ( PPE ) and ventilators and develop vaccines for the people of Michigan and across the globe . COVID-19 imposes many stresses on manufacturers , from liquidity to talent development . Tax policy must adapt to and accommodate these unusual stresses . Michigan must embrace the concept of continual improvement to remain competitive in a dynamic global economy .
State tax policy must reflect the manufacturing sector ’ s need to compete successfully in the global economy from a Michigan location . It must be competitive , efficient , understandable and reliable as companies make business decisions every day .
— Kelli Murphy , Chair , MMA Tax Policy Committee State & Local Tax Attorney , Office of Tax Counsel , Ford Motor Company , Detroit mimfg . org