BEES tracks growth by compiling data on six components that are given equal weight: job creation, personal income, tax revenue, housing prices, mortgage delinquencies and the performance of Bloomberg stock indexes that track the share prices of locally based companies. The BEES index, updated quarterly, is a measurement of growth, not absolute performance, so a slowing economy with low unemployment may rank below a battered state on the mend.
By lowering businesses taxes, eliminating the Michigan Business Tax and removing other barriers to growth, Michigan is leaping from one of the bottom tax climates in the nation to a more competitive position. The nearly $1.8 billion reduction in business taxes promises a new level of economic certainty for businesses and makes Michigan an attractive environment for growth.
Earlier this year, Fitch Ratings also took note of Michigan’s progress. This balanced budget based on solid financial principles helped move Fitch’s outlook for Michigan to “positive,” another sign that Michigan is on the right path and that our fiscally sound environment is ripe for economic growth.
And just this week, the U.S. Small Business Administration reported Michigan’s banks and credit unions led the country in providing government-backed small-business loans, according to new data from the U.S. Small Business Administration.
The Detroit Free Pressreported that from October 2010 through September 2011, $689 million in small-business loans went to businesses in a variety of industries in Michigan. During that time frame, lenders made 2,063 of the most popular type of SBA loans, called 7(a) loans, up 47 percent from the 1,406 loans worth $386 million in fiscal 2010.
North Dakota was the only state to record positive economic progress overall between the end of 2008 and the second quarter of this year, according to the BEES, a new quarterly index that combines data on tax collections, personal income, employment, home prices, mortgage foreclosures and the stock prices of public companies. Those suffering the worst economic tailspins -- with drops of more than 20% since 2008 on the BEES -- were Wyoming, New Mexico, Idaho and Nevada.
Detroit Free Press
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