Wolverine State insurers have come up with data to show state lawmakers that increasing taxes on their operations could hurt the state’s job market.
If lawmakers leave the current tax structure in place, the Michigan insurance industry will grow 10% by 2014, according to a report commissioned by the Michigan Insurance Coalition, Lansing, Mich., and prepared by GSP Consulting Corp., Pittsburgh, that was
Insurance industry growth will help create 6,000 new jobs in the industry and more than 16,000 jobs at other employers that depend on insurers and insurance industry workers for business, the consultants predict.
The consultants estimate insurance industry growth will generate about $125 million in additional state and local tax revenue.
Michigan’s “single business tax” expires Dec. 31, and some lawmakers have proposed replacing some of the revenue from that tax by imposing new taxes on insurance products and insurance companies.
The Michigan Insurance Coalition says the insurance industry contributes $7.7 billion to the annual gross state product and plays a critical role in stabilizing Michigan’s economy.
“Increasing the tax burden on a sector of the economy that is growing and creating jobs goes against the grain of insuring for Michigan’s future,” says James Miller, the coalition’s president.
CORRECTION: Due to an editing error, the state nickname of Michigan was given incorrectly in an earlier version of this article.