Wayne State University

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Wayne State University

Public Relations

Media Report

May 1, 2006

SBT bedevils tech, service businesses: People-intensive industries pay more when they hire

Technology and other service companies being looked at to revive Michigan's struggling economy are hurt most by the state's 30-year-old single-business tax. That's because the tax was put in place to encourage capital-intensive investments in Michigan, said experts such as Randy Paschke, chair of the accounting department of the School of Business Administration at Wayne State University. Paschke said the tax was intended to encourage foreign automakers and other manufacturers to look at Michigan when it was first put in place in 1975 to replace seven taxes, including the property tax.

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