Michigan’s $1 Billion Corporate Welfare Check

A lack of transparency surrounding subsidies from the  Michigan Economic Development Corporation (MEDC) casts a dark shadow on the government agency. As Tom Gantert of Michigan Capital Confidential reports, in 2016 the Great Lakes State will dole out more than $1 billion in subsidies to private businesses.

Yet, the MEDC, which “oversees the state’s corporate welfare programs …  refuses to say which business get the payments or how much they are paid.” Furthermore, as Gantert writes, these subsidies come in the form of “refundable tax credits,” created with government agreements lasting as long as 20 years.

Making matters worse, Gantert notes, “companies have some discretion over when to claim these credits, which means the Department of Treasury never knows for certain how large the bill will be in any year.”

Mackinac Center’s James Hohman gives a common sense summary of the situation: “The state is expected to give over $1 billion of other people’s money to companies it selected for favors. It’s bizarre that taxpayers are not allowed to be told which ones are collecting.”

More Blog Posts

07-13-2018 04:07pm

Pretrial Justice Bail Reform Poll

A new survey—conducted by the Charles Koch Institute and the Pretrial Justice Institute—asked Americans about their knowledge and opinion of the United States’ pretrial justice system. Respondents were clear: the current system favors the wealthy and must be reformed.

Read more

06-11-2018 03:06pm

North Korea & Denuclearization—Rational Actor, or Unbalanced Risk-Taker?

Could history made in the spring continue through the summer? After tense missile tests and discussions of “bloody nose” strikes, the Korean peninsula has been experiencing a period of unprecedented diplomacy.

Read more

06-11-2018 09:06am

Survey on North Korea Diplomacy : Americans, South Koreans Want Diplomacy Rather Than Military Engagement

In a new survey by the Charles Koch Institute and Real Clear Politics, Americans and South Koreans overwhelmingly agreed that they do not want to pursue military action against North Korea, whether or not the June 12 summit is successful in securing denuclearization of the Korean Peninsula.

Read more

Sign up for updates