LANSING ? The word from Gov. Granholm?s German trade mission ? despite heat domestically for Michigan?s high business taxes, German business executives view the state as very competitive.
Granholm has lead a trade delegation this week that includes Birgit Klohs, president of Grand Rapids-based The Right Place Program, and L. Brooks Patterson, Oakland County executive. Granholm spokeswoman Biz Boyd said German business executives have told the governor they consider Michigan to be a very competitive, despite its Single Business Tax.
Granholm has placed a priority on convincing Michigan lawmakers to change the Single Business Tax during the lame-duck session. But that idea has been scuttled by legislative leaders – principally in the Senate ? who are not willing to move ahead on the proposal. Boyd said the proposal would not likely be released until after New Year?s Day.
Taxes are extremely high in Germany, where business profits can get hit with a 50 percent rate and sales taxes total 16 percent. Then there?s the German work week, just 35 hours, along with a mandatory six weeks of paid vacation time each year.
Boyd said the governor is getting good feedback from German business officials who find the state much more nimble and easier to work with than German government agencies. Granholm has been telling German business leaders that Michigan plans to be even more competitive in the future, Boyd said.
