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

04-05-2018 08:04pm

Second Chances for Prisoners Help All of Us

Read more

03-20-2018 09:03am

Iraq at 15

According to a new poll conducted by the Charles Koch Institute and Real Clear, Americans do not think that the Iraq War has made the United States safer, nor do they think the Middle East is more stable.

Read more

02-13-2018 09:02am

Julie Warren Profile

After working at the U.S. Department of Justice, and as a criminal appellate lawyer for the West Virginia Attorney General’s Office, Julie Warren is devoted to improving the system for everyone—from parolees to police.

Read more

Sign up for updates

Sign up to receive weekly updates in news and events.