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

10-08-2018 08:10am

Occupational Licensing Reforms Remove Roadblocks

New Mexico’s occupational licensing reform shows how making changes at the state level removes barriers to opportunity, especially for low- and moderate income Americans.

Read more

09-25-2018 03:09pm

Pompeo’s On the Right Track with North Korea Negotiations

Mike Pompeo’s move to invite North Korean Minister of Foreign Affairs to DC is in line with the views of Americans and South Koreans.

Read more

09-24-2018 11:09am

This Banned Books Week, Be a Literary Rebel

While the banning of books may seem more suited for the plot of 'Fahrenheit 451,' the practice is still alive and well across classrooms in the United States. Banned Books Week seeks to bring awareness to censored books, promotes the protection of First Amendment freedoms, and highlights the value of storytelling.

Read more

Sign up for updates