Saturday, January 29, 2011

New Mich. Governor Wants to End Tax Credits and Subsidies for Failed "Job Announcement Programs"

MIDLAND, MI — Gov. Rick Snyder’s flat corporate income tax proposal would eliminate Michigan Economic Growth Authority tax credits, including the film subsidy, and represents a victory for taxpayers and good government, said Mackinac Center Director of Fiscal Policy Michael LaFaive.

“This is a bold move to fix Michigan with a simpler business tax system and one that would eliminate ‘jobs’ programs that don’t create any,” said LaFaive.

The Mackinac Center has been the longest and most consistent critic of MEGA and other economic development programs. In 1995, Center analysts published a study that warned against undertaking the MEGA program. A 2005 Mackinac Center study found that for every $123,000 in MEGA tax credits offered, the program created just one construction job, but 100 percent of those disappeared within two years. The Center’s 2009 MEGA study found an association between manufacturing jobs and the program, but it was negative. That is, for every $1 million in tax credits actually earned by MEGA companies in a given county, there was an associated loss of 95 manufacturing jobs in that county.

“At best, MEGA is a job announcement program, not a job creation program,” LaFaive added.

5 Comments:

At 1/29/2011 7:37 PM, Blogger Che is dead said...

Now that she’s left office, former Michigan Gov. Jennifer Granholm plans to write a book, teach at Berkeley and stay in the public eye as a speaker and commentator.

The 51-year-old two-term Democrat told POLITICO in an interview that her new work will revolve around the interrelated themes she emphasized as governor: creating jobs, reviving American manufacturing and expanding the clean energy economy. -- Politico

U.C. Berkeley taps former Michigan Gov. Granholm to teach "job ceation"

What's next, a business ethics class taught by Bernie Madoff?

 
At 1/29/2011 7:46 PM, Blogger Jason said...

Granholm is a stain on the state of Michigan that will never be completely removed. I would say she should be erased from the history books, but her term-limited eight years in office should stand as a warning to all of bad executive leadership.

 
At 1/29/2011 9:38 PM, OpenID businomics said...

I came to much the same conclusion about economic development efforts in Oregon. My article, "The Unseen Costs of Ribbon-Cutting: Losses from Economic Development Programs" is at http://www.cascadepolicy.org/pdf/fiscal/I_1011.pdf

 
At 1/29/2011 10:33 PM, Blogger W.E. Heasley said...

Che is Dead and Jason:

Wasn’t ‘Jennifer Granholm’ a prime time soap opera? Had an 8 year run in prime time on TPN (Tax Payer Network). The opening theme song was real catchy: “You’ll laugh, you’ll cry, you’ll kiss your income good-bye”.

You mean that was for real?!? Ah, the evil of it all!

 
At 1/30/2011 9:27 AM, Blogger juandos said...

Ahhh W.E. Heasley, that was very good...

Granholm and apparently the University of California Berkely will never be able to understand the simple wisdom of businessman John Hutchinson...

 

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