Sandy Baruah, president of the Detroit Regional Chamber, said that companies are responding rationally to Michigan’s tax climate, which could worsen under proposed increases. This statement was made on the Chamber’s website on February 10.
“The proposed corporate income tax increase will do nothing but jeopardize the state’s ability to do business,” said Baruah, President and Chief Executive Officer. “Nearly 85% of corporate income tax payers are businesses under 100 employees. Michigan needs good roads to move people and products and support a thriving economy. It cannot be at the expense of small businesses and the state’s business-friendly climate.”
In late 2024, General Motors (GM) announced layoffs affecting 1,141 employees in Michigan, including 507 at the Warren Tech Center and 634 at Orion Assembly. According to Bridge Michigan, these changes were part of GM’s efforts to optimize operations for long-term competitiveness amid broader shifts in the auto industry. Despite receiving $824 million in state incentives, GM emphasized the need to realign resources with evolving market demands and electric vehicle transitions.
General Motors is facing pressure from Michigan House Republicans who passed legislation in March 2025 to end longstanding MEGA tax credits granted to the Detroit Three automakers. As reported by GM Authority, this move would raise GM’s business tax rate from 4.95% to 30%, potentially eliminating $500 million in refundable tax benefits. Originally enacted in 2009 to stabilize the auto sector, these credits were set to continue through 2030. GM and its allies argue that repealing them could severely undermine Michigan’s competitiveness, with the Michigan Manufacturers Association warning of a “506 percent increase” in taxes.
In June 2023, GM committed $632 million to expand its Fort Wayne, Indiana truck plant, supporting production of next-generation internal combustion vehicles. According to Reuters, Indiana’s corporate tax rate of 4.9% and strong logistical infrastructure made it an appealing location for this project. Simultaneously, GM continues major investments in Michigan, such as its $4 billion electric vehicle facility at Orion, illustrating a diversified strategy based on each state’s unique economic environment and policy landscape.
Sandy K. Baruah is the President and CEO of the Detroit Regional Chamber and has been a leading voice for business in Michigan. As detailed on the Chamber’s website, Baruah previously led the U.S. Small Business Administration during the 2008 financial crisis and served as Assistant Secretary of Commerce under President George W. Bush. His background in economic development provides him with strong credibility in analyzing tax policy and business competitiveness.
