Michigan Tax Burden Increases, Census Bureau Shows

New data from the U.S. Census Bureau show that state and local government tax burden increased from 2006 to 2007. Michigan workers pay on average $8,691 in property, sales, income and other taxes. This is a one-year increase of 5.9 percent.

Michigan state and local governments rank above average in tax burdens^[i] by many measures.

• 18th in taxes as a percentage of Gross Domestic Product (9.8 percent)
• 24th in taxes as a percentage of personal income (10.7 percent)
• 20th in taxes per job ($8,691)
• 29th in taxes per capita ($3,691)

Michigan state and local governments also receive revenues from sources apart from taxes. Compiling all of government revenues - from water fees to state college tuition - gives an indication over the size of state and local governments. The data indicates the revenue of Michigan's state and local governments^[ii] combined represent a larger portion of the state's economy than average.

• 12th as a percentage of Gross Domestic Product (20.6 percent)
• 16th as a percentage of personal income (22.6 percent)
• 13th in government revenues per job ($18,321)
• 27th in government revenues per capita ($7,782)

See this for last year's rankings.

No one should be surprised after reading this (Michigan Education Association for more tax revenue) that Michigan spends a greater than average proportion of all state and local government revenues for education - 40.6 percent. In fact, only Vermont spends more.

[i] These figures include revenue from all state and local government taxes - income, property, sales, business and all other taxes.

[ii] These figures include all state and local government revenue minus money from the federal government.

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