Posted on 02/03/2011 8:58:44 AM PST by MichCapCon
Although details are not yet clear, according to early reports Gov. Rick Snyder’s proposed Michigan Business Tax replacement appears to be good news for advocates of sound economic policy. Whatever the final details, lowering the tax burden on job providers and making the system much less complex will surely provide a boost for commerce in the Great Lakes State.
Arguably of equal importance, press reports are saying the governor’s proposal would also end the Michigan Economic Growth Authority’s selective corporate tax break and subsidy program, and the state film subsidies as well. Research by Mackinac Center analysts shows that, at best, MEGA creates no new net jobs, and it may actually destroy them.
Specifically, Mackinac Center scholars have performed two separate statistical analyses of MEGA, using different methodologies and time periods. A 2005 study found that for every $123,000 in tax credits offered by the program, just one construction job was created, all of which had disappeared after two years.
In 2009, the Center zeroed in on MEGA’s effect on manufacturing jobs, and discovered an apparent link — a negative one. That is, for every $1 million in tax credits actually earned by MEGA companies, 95 manufacturing jobs were lost in the counties where the recipient firms were located...
(Excerpt) Read more at michigancapitolconfidential.com ...
Every time I see a Post on Michigan I ask the same question, but never get an answer. I will try again and maybe someone from Michigan can provide an answer. The best thing that could happen to Michigan would be to pass “Right To Work” legislation. Does the new Governor and the Republican legislature have the will to make that happen?
I thought that last Michigan governor, the Canadian communist Granholm, had solved all of Michigan’s fiscal problems?
Its a start. Now if he would just deal with the welfare habit in the general population.
Fine a jim-dandy. Now break the back on the unions and then you guys will be making progress.
No. AM radio has had a lot of spots over the last few years (mostly in ‘08/’09) with usual suspects like the heads of UAW, the teachers union, public employees union, etc. patiently explaining to the masses that right to work will drive high quality jobs and high quality workers out of the state. The masses believe it. Same dynamic that led to one of the highest minimum wages in the country, an insane regulatory burden on private business and landowners, a mostly defunct public school system, the second highest auto insurance rates in the country, high gas prices, and even the 10 cent deposit on carbonated beverages.
Michigan is an economic disaster area and will likely remain so for generations.
Gov. Snyder to Break Michigan’s Corporate Welfare Habit,GM and MoPar snicker tell him to talk to Obama.
Highly doubtful. The new gov is a moderate squish.
No argument from me. However, the Unions are still pretty entrenched (at least in the socialist southeastern part of the state) and can be counted on to fight RTW laws tooth and nail.
Ignore me if you have been pinged already for the Michigan list, grellis.
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