News Story

Michigan Worst in Nation for Adding High-Income Earners from 1999 to 2009

Michigan was the worst state in the union when it came to the growth of high-income taxpayers from 1999 to 2009, according to a new Tax Foundation analysis. The nonpartisan tax research group charted the percentage growth in each state of taxpayers earning more than $200,000 annually. North Dakota finished first.

Tax Foundation’s Nick Kasprak, author of the analysis, said the national average for growth of taxpayers making $200,000 or more was 51.6 percent. Michigan came in at 18.1 percent. North Dakota saw a 137.4 percent increase.

“The recession obviously hit Michigan very hard and its incomes are more depressed than most states, so that’s why it scores so low,” Kasprak said in an email.

Because of inflation and economic growth, all states generally saw more people making more money over a 10-year period.

But James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy, said the study was another example of Michigan’s downtrodden economic condition over the past decade.

“This does really show that Michigan hasn’t been the place to make your fortune,” Hohman said. “The United States is the land of opportunity. Michigan is the least opportune place. Michigan has been stagnating the last decade.”

A Tax Foundation analysis released earlier found that 345,717 taxpayers earning a combined $12.8 billion left Michigan for another state from 1998 to 2008.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.