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Six charts to change your mind about Michigan

Our state’s competitiveness ranges from poor to middling

… corporations is a bigger priority for lawmakers than the state police. Corporate welfare has fallen in and out of fashion among lawmakers. Subsidies were big … population has been stagnant. Resident incomes are up. Auto jobs are down. Corporate welfare doesn’t work and economic freedom does. All in six charts. more

Michigan’s budget isn’t sustainable…Yet

Lawmakers should practice more restraint

… for the state’s unsustainable budget increases? Record amounts of pork. Lawmakers approved $4.4 billion in unfair, ineffective, and expensive corporate welfare spending last year. Surely, more restraint on the part of policymakers would have resulted in better spending habits. Gov. Whitmer’s executive … more

Michigan job, population numbers fall behind national trends

Recovery from pandemic has also lagged the national average

… fought to prevent a $700 million income tax cut, a matter the Mackinac Center is litigating. Instead of lowering taxes, Whitmer approved record corporate welfare and doled out over $1 billion in taxpayer money for lawmaker earmarks. more

Bring back the public benefit

If Whitmer is cutting our costs, why are we all paying more?

… public. Or police union contracts that keep police from basic accountability. Or budgets that grow faster than taxpayers’ ability to pay. Or the pork, corporate handouts and union favors already mentioned. People deserve better than a government that takes money from unfavored groups to hand out to favored … more

The simple truth that Michigan’s population council can’t tell

Want to make Michigan competitive? Let people keep their money and send less of it to Lansing

… taxpayer-funded subsidies in 2023. It has been shown time and again that corporate welfare often fails to generate the amount of jobs that corporate and government officials promise. Still, the Whitmer administration continues … more

Top 10 CapCon stories for 2023

Tales of government activism gone wrong

… dollars from Michigan taxpayers. 7. EV battery maker gets $189M in corporate welfare, lays off 170 employees, Nov. 18. Two years before mass layoffs, EV … Michigan lawmakers awarded it $1.7 billion in cash and other forms of corporate welfare. 5. Jennifer Granholm’s terrible, horrible, no good, very bad EV … more

A tale of two Michigan growth strategies

What Michigan’s growth council can learn from the Mackinac Center

… discernable impact,” Hannah Kling, author of the Mackinac Center study, wrote, summarizing other research. Kling finds that investing tax dollars in corporate welfare, transit, and housing in a community to make it more appealing is largely a waste of money because it does not attract the higher-skilled workers … more

Why you should never believe corporate welfare promises

Planners’ forecast for Ford plant was comically wrong; will anybody be held to account?

… officials should not be in the corporate handout business. They have … to predict which of their corporate supplicants will flourish … fashion. Politicians and corporate leaders held a press event … that one show that such corporate subsidy programs fail to … This suggests that these corporate subsidy programs are just … more

After getting $824M in state aid, GM to cut 900 jobs at Orion Assembly

GM CEO claimed investment would not have been possible, except for corporate welfare

… Assembly in January 2024. The company received roughly $824 million in corporate welfare from Michigan lawmakers less than two years ago, in January 2022. … said the Orion investment would not have been possible if not for corporate welfare. "These important investments would not have been possible without … more

Ford Marshall plant dubbed worst deal of 2023

Taxpayers spent $1.7B; governor’s allies ran expensive smear campaign against dissenters

… smear campaign against skeptical local residents set Michigan’s subsidies for Ford’s Marshall battery plant apart from all the other terrible corporate welfare deals across the country,” said Mozena in a statement accompanying the award announcement. “It’s one thing for politicians to use fuzzy math … more

EV battery maker lays off quarter of staff

Our Next Energy ‘on track’ to build facility after $237M welfare package

… v. Gretchen Whitmer was all smiles at Our Next Energy’s ribbon-cutting event in October 2022. After state officials arranged $237 million in corporate welfare, the $1.6 billion project broke ground in Wayne County, with promises to hire 2,112 workers. ONE, an electric vehicle battery maker aiming to … more

Selective subsidies are a losing strategy for Michigan

Corporate welfare does not fuel high-growth states and is not the answer for Michigan

… grow the economy. But there is a difference between appearance and performance. In the ways that matter, Michigan continues to fall behind. Corporate welfare has three basic problems. First, it’s an ineffective way to create jobs. Second, it’s unfair to the businesses that don’t get handouts. Third, … more

The missteps of the Michigan Legislature were many in 2023

Forced unionization, pork, and corporate welfare are the story of first half of the 102nd Legislature

… lawmakers in the first year of the 102nd Legislature. $4.1 billion in corporate welfare Michigan voters may be confused about Democrats’ relationship with … facilities and creating new jobs, and they authorize billions in corporate welfare to get those headlines. But it’s headlines that are being chased, … more

Ford pares back Marshall plant, and state incentives will follow

Automaker will hire 800 fewer people than planned; investment will shrink by $1.3 billion

… in Marshall, but will hire 800 fewer people than expected, the automaker announced Monday. Michigan officials say the size of the project’s corporate welfare package will also be adjusted. All told, the project is in line for about $1.8 billion in various incentives, ranging from direct cash grants … more

EV battery maker gets $189M in corporate welfare, lays off 170 employees

Mass layoffs come less than two years after incentive package

… in March 2022 the state’s commitment to give up to $189 million in corporate welfare to the electric vehicle battery maker. Whitmer touted the company’s … the effectiveness of the strategy. A breakdown of the $189 million corporate welfare package is pictured below: “Michigan’s economic fortunes do not rely … more

Nessel distances self from AG opinion in lawsuit response

AG argues that the interpretation driving Michigan tax law is “not at issue” in suit

… lawmakers attempted to back-spend nearly $700 million,” explains the Mackinac Center Legal Foundation. “After a failed attempt to spend the money on corporate welfare projects, they announced their plan to provide $180 ‘inflation relief checks’ to each Michigan household. These bills lacked the support needed … more

Ford’s UAW strike has ended; will BlueOval Battery Park resume?

Union leadership and state officials had linked pause to the strike

… the UAW strike, which began on Sept. 15. The very next day after Ford announced the pause, the Michigan Strategic Fund, a board that grants corporate welfare, approved $65 million for the Marshall site. Those funds were granted to the Marshall Area Economic Development Alliance, whose leader, Jim Durian, … more

Ford halts work at Marshall site, but state keeps spending

No pause in Michigan Strategic Fund’s $65M giveaway to embattled BlueOval Battery Park

… project, it cited doubts about whether it could be competitive. BlueOval Battery Park is a $3.5 billion project in line for $1.7 billion in corporate welfare as well as other incentives and tax abatements. Ford’s website still says that battery production will begin at the facility in 2026. more

Lansing treats taxpayer money like Publishers Clearing House

Lawmakers bring home large, taxpayer-funded checks to their communities. Literally and figuratively.

… entity or hand-picked corporation to get that treatment. Taxpayers want to know that our government evaluates and spends our money wisely. Corporate welfare and large checks do not gain the confidence of the people. Instead of handing taxpayer money giveaways, can we just get the tax cut we were … more

So you want to move to Michigan? Here’s the reality

$20M marketing blitz won’t mask Michigan’s problems, but an engaged public can help

… poorly. We have government officials who go to great lengths to cancel income tax cuts for the public. They then turn around to offer billions in corporate welfare to Michigan’s biggest companies. Our leaders believe the answer to every problem, even a state-created problem, is more bureaucracy. We have … more

Recipient of $65M confident Marshall project will resume

Since Monday, three top officials have portrayed Ford pause as a tactic in UAW negotiations

… fund and head of the MEDC, told the board Tuesday. All told, the $3.5 billion project could have already received as much as $270 million in corporate welfare of the $1.7 billion pledged by lawmakers. more

Ford pauses EV battery project; UAW calls decision ‘shameful’

Though the Ford-CATL project sought non-union labor, striking union sees pause as a threat

… granted the project about $1.7 billion in cash and other forms of corporate welfare. BlueOval Battery Park drew major scrutiny, from Marshall residents … added. Rep. Sarah Lightner, R-Springport, also noted the size of the corporate welfare for the project, saying it wasn’t enough to overcome unfavorable policies. … more

In words and deeds, Whitmer sends mixed message on China

Speech demands Michigan reduce reliance on goods from China, while touting Chinese EV battery plants

… Gretchen Whitmer’s words and deeds were in conflict last week. Whitmer and the Michigan Economic Development Corporation have championed a mass of corporate welfare for two forthcoming Chinese electric vehicle battery plants. There’s Gotion in the Big Rapids area, and there’s the Ford-CATL collaboration at … more

Michigan’s 2024 budget is built on a shaky assumption

If courts rule that Michigan’s income tax cut is permanent, not event-driven, the state’s budget assumptions would be faulty

… hand-picked large corporations and smaller organizations in the form of corporate welfare and district pork projects.  Imagine working for a company and being … from getting their rollback. She did so while doling out billions in corporate welfare. Whitmer failed to stop the 2023 tax cut. Now she’s focused on stopping … more

Michigan offered company $28B in corporate welfare, and still didn’t land it

Cash incentive offered to Micron was bigger than Michigan’s budget for state police and corrections

Michigan taxpayers were almost on the hook for $28 billion in corporate welfare and tax abatements to an Idaho-based semiconductor company, The Detroit News reports. But that company, Micron Technology, took a bid from New York State instead and will open its facility near Syracuse. The Detroit News’ … more

‘Too good to be true’ New York $1B solar boondoggle a warning for Michigan

Promised a manufacturing hub, Buffalo got a Tim Horton’s coffee shop

… policy, has warned that job announcements are not jobs. Politicians use corporate welfare to facilitate job announcements, as New York politicians did with … job creation at subsidized projects in Michigan. The promises of corporate welfare are rarely met. The New York factory created just enough jobs to avoid … more

Michigan House committee approves $120M more for Ford Marshall site

Taxpayer tab for Ford’s Blue Oval Battery Park is north of $1.5 billion

… tax incentives are taken into consideration.” Because the funds were already appropriated to the Michigan Strategic Site Readiness Program, a corporate welfare effort meant to prepare sites, only a legislative transfer was required, not a vote of the full legislature.  For legislative transfers, approval … more

Gretchen Whitmer’s Michigan: Red tape and orange barrels

Michigan can’t fix every problem, but it can control the controllable, starting here

… right-to-work, which provides better economic outcomes for workers and businesses. Stop wasting hundreds of millions annually in taxpayer dollars for corporate welfare. Expand educational opportunity through funding children, not systems. Economic studies reenforce the fact that when the government steps out … more

Dingell’s MEANS Act is corporate welfare at the global scale

Bill claims to promote domestic manufacturing. But nearly 70 countries would qualify for aid

… manufacturing would expand international corporate welfare to a large list of allies. Rep. Debbie Dingell, … Brazil. In essence, the bill would make corporate welfare global in scope. The Office of Manufacturing … and the supply chain. It’s about boosting corporate welfare. The bill is currently being considered … more

Lansing Math: Michigan pays $340,000 per (promised) job at Gotion factory

New $175 million round of corporate welfare brings state’s tab for Mecosta County project to $800M

… Outreach and Attraction Reserve fund, which Michigan uses to grant corporate welfare, only a legislative transfer was required. Not a full vote of the … investment, the state takes no ownership share in the company. This is corporate welfare. James Hohman, the Mackinac Center’s director of fiscal policy, noted … more

Despite billions in corporate welfare, Michigan’s jobs market still back of the pack

The Michigan economy since the COVID-19 pandemic has not been a pretty picture

… Michigan employment is still down 101,419 jobs from its pre-pandemic level, a 2.1% decrease. Michigan lawmakers have authorized some $5 billion in corporate welfare since 2020. But Michigan’s slow jobs recovery stands in contrast to states that give out far less cash.  Government handouts are not the answer, … more

Michiganders want energy choice; Michigan can’t deliver it

Michigan’s Electric Choice program has more people waiting for it than using it

… published in 2019. The Mackinac Center publishes several such policy guides annually. Some of the most recent ones address tax cuts, education and corporate welfare. Between 2002 to 2008, Michigan residents could use an alternative energy supplier. But in the monopoly era, things changed for the worse. … more

Michigan legislature ducks action on energy reliability

Michigan lawmakers were shocked, shocked by mass power outages, but they have done nothing about the problem

… all the levers of government in Lansing. It has checked off its favored agenda items at break-neck speed, including right-to-work repeal and corporate welfare giveaways. Leaders in the legislature have demonstrated that they will rush through their priority items no matter the expense, even having … more

Hohman: Michigan media asks the wrong questions, fosters bad policy

On roads, energy, schools and corporate welfare, bad questions lead to bad outcomes. These are four alternatives.

… and “generational investment” to describe these projects. But these promises never deliver. Ever. There’s not one state that can point to a corporate welfare deal as the reason it went from economic backwater to thriving commonwealth. And the biggest deals tend to flop the hardest. The goal should … more

The Whitmer agenda is a sop to the rich

Governor proposes EV subsidies that would benefit the well-off

… pushed for years to expand social welfare programs to more people. They often … taxpayer might benefit from this welfare. College: Michigan primarily funds … be relatively well-off retirees. Corporate subsidies: In one month, the new … roads. It’s safe to say that corporate welfare is the top spending priority … more

Michigan Democrats are the party of corporate welfare

For the Democrats who run Lansing, fixing the roads takes a back seat to picking winners and losers

… plant in Marshall. Democrats, who have full control of the legislative and executive branches, have now spent $2.9 billion of taxpayer money on corporate welfare since coming to power in January. “All the gains in reduction of poor bridges over the last 10 years have now been lost,” the Michigan Transportation … more

The good news and bad news in House Bill 4001

Tax cut survives, but spending package includes $1.65B in corporate welfare and handouts.

… The good news about House Bill 4001 is that the tax cut was preserved. The bad news is everything else. The bill includes $1.5 billion for corporate welfare, including the first installment of a $500 million ongoing source of revenue for the Strategic Outreach and Attraction Reserve, the SOAR Fund … more

Michigan spends a quick $3B picking winners and losers

Legislators pass 5 bills, call for $2.9B to be handed out to the few, as chosen by state officials

Corporate welfare is a big winner, early into Michigan’s 102nd Legislature. With just five bills signed into law, Michigan lawmakers have spent $2.9 billion of taxpayer money picking winners and losers, by way of cash giveaways and grants. Senate Bill 7 represents the quickest billion dollars to be … more

Michigan Senate Republicans held the line on House Bill 4001; will Democrats change the rules?

Two months into majority leadership in the legislature, Democrats look to change the rules of the game

… of 2023, which would swap a permanent tax cut for a one-time $180 check to tax filers. The bill would also approve a new round of funding for corporate welfare. If House Bill 4001 does not take effect by April 18, there will be no $180 checks. This is because the Democratic majority plans to move funds … more

Taxpayers to spend $680K per job at Ford’s Marshall battery plant

Bad math and bad business make good politics for those playing on public confusion.

… to get nearly $1 billion in corporate welfare ($210 million) and tax abatements … factory. No, this is old-fashioned corporate welfare. This is a few politicians in … the Mackinac Center opposes corporate welfare. It’s a process steeped in politics … Michigander is created who confuses corporate welfare for economic development, cash … more

Hohman: Michigan economy needs to catch up

Michigan hands out corporate welfare to cover up for a poor business climate. It doesn’t work.

… more as a barrier to entry than a way to protect public health. They can encourage cheap and reliable electricity. Related reading: Are Michigan’s corporate giveaways masking the state’s real problem? A better business climate would help Michigan attract people from around the country, especially those … more

MEDC asks $5,700 for nondisclosure agreements

Government-by-NDA has been business as usual in Michigan. But the Mackinac Center insists on transparency

… in confidentiality deal When taxpayer dollars are spent granting corporate welfare, state officials — including the very lawmakers who allegedly sign … nondisclosure agreements. How many nondisclosure agreements exist on corporate welfare deals? The MEDC’s preliminary response to the FOIA request offers … more

Michigan Rep: 102nd Legislature is off to a rocky start

Michigan lawmaker bemoans lack of debate, regular order and transparency at Capitol

… voted to impose a tax increase, via House Bill 4001. Related reading: Michigan House votes to cancel tax cut, replace it with $180 checks, corporate welfare The Democratic majority used a conference committee procedure, which avoids any changes or discussion of the bill passed by the committee, to … more

In the Michigan House, COVID-19 policy is for staff, not members

Members are encouraged to follow the guidelines, but twice this year, representatives have shown up to cast votes after testing positive

… package. This month Rep. Veronica Paiz, D-Harper Woods, showed up to vote for House Bill 4001, which would replace an automatic tax cut with corporate welfare and one-time checks for $180. In 2020, almost one-third of Michigan businesses reported facing a government-mandated shutdown due to COVID-19. … more

Michigan House votes to cancel tax cut, replace it with $180 checks, corporate welfare

13 of 18 ‘no’ votes from Senate Republicans could preserve a tax cut

… checks, shifting $800 million to last fiscal year to avoid the tax cut, and creating an ongoing $500 million per year source of funding for corporate welfare. The Mackinac Center on Thursday condemned the House passage of House Bill 4001. “Lawmakers should not hide behind a fig leaf of one-time rebate … more

Whitmer seeks ongoing $500M per year for corporate welfare fund

Budget director: SOAR incentive fund would be filled from corporate income tax collections above $1.3 billion

… but its history is one of failure Whitmer’s plan would fund SOAR from corporate income tax revenues, according to budget documents. The funds would come from corporate tax collections the exceed $1.3 billion per year. Smaller sums would be … more

Update your memes: Michigan Democrats have embraced corporate welfare

Progress Michigan meme misses the reality in 2023: In Democrat-run Lansing, corporate welfare is as popular as ever

… organization fails to mention is that Democratic leaders have prioritized corporate welfare during their first month of control in Lansing. The Democratic trifecta … spending in Senate Bill 7. The bill, which includes $450 million in corporate welfare, was passed without hearings or testimony before being sent to Gov. … more

Senate Republicans can stop Whitmer’s attempts to trade income tax cut for corporate welfare

Whitmer’s great switcheroo must work on a tight timeline. Will Senate Republicans preserve a tax cut for their voters?

… transfer $800 million of last year’s general revenue into the state’s corporate welfare fund and backdate the transaction to last September.” The transfer … with Democrats against a tax cut for individuals, and in favor of corporate welfare. The Gongwer report adds that “Democrats also are said to be offering … more

In Escanaba, $200M for a paper mill, but no new jobs required

The paper mill does not have to create new jobs, only to retain its 1,200-person headcount as of October 2022

… money — hundreds of millions of dollars — into corporate coffers. An appropriations bill of corporate welfare called for sending $946 million from taxpayers … Outreach and Attraction Reserve — to dole out corporate welfare, he notes. Why not use it? Lawmakers granted … more

8 Republicans voted for Lansing’s $946M spending spree

4 House Republicans and 4 Senate Republicans crossed party lines to help Democrats pass spending bill

… proud to stand up for Upper Peninsula families and help secure funding to keep these jobs long into the future.” Damoose went on to defend corporate welfare as a practice, as well as bipartisanship. “I will continue to support strategic investments and policies that foster growth and secure the economy … more

CapCon’s Michigan Constitution Project: What we hope to achieve

In 2023, Michigan Capitol Confidential will study the state constitution

… been affected by the constitution Compelling constitutional cases Laws and government actions that are affected by the constitution, including corporate welfare policy Patrick Wright is vice president of legal affairs at the Mackinac Center for Public Policy and one of the foremost legal minds on the … more

Where is your money being spent? Michigan government won’t always say

Lansing spends large amounts of money in an opaque way

… get taxpayer money, but when they’ll get it, and how much. Some corporate welfare agreements in the past had nondisclosure agreements. In other words, … elected officials serving you in the Michigan Legislature stand on corporate welfare, or if you want to tell them how you feel about it, you can go to … more

Slotkin ad mistakes job announcements for jobs, subsidies for growth

Opposing subsidies is not the same as opposing jobs

… Tom Barrett, R-Charlotte. Barrett has been clear in his position that corporate subsidies do not work. Barrett wrote in a July op-ed for The Detroit News: … The people and the politicians of Michigan should be skeptical of big corporate subsidies and the inflated job claims that accompany them. Job announcements … more

Michigan government lacking in transparency

The Mackinac Center supports the right of the people to know what their governments are doing

… the secret deal. Lawmakers established a $5,000 punishment for anyone who told the taxpayers how much their representatives were spending in corporate welfare. A Michigan resident pursued the matter to the state Supreme Court, calling on it to force the Legislature to disclose the agreements. The Michigan … more

We are not as divided as we think

When it comes to government spending, there’s got to be a better way

… Court ruling against the Michigan Economic Development Corporation. The MEDC, a state agency, took taxpayer dollars and then gave billions in corporate welfare to General Motors, which has had a net income of over $59.7 billion since 2014. While the MEDC acted in the name of 'we the people,' it also … more

Michigan Legislature gave cover to GM, MEDC on tax credits

Transparency is Mackinac work. How the Mackinac Center Legal Foundation spoke up in favor of the public’s right to know.

… conceal the amount of taxpayer dollars Michigan gives GM in the form of corporate welfare. The Legislature went as far as to enact laws to ensure the amount … elected officials and agency employees are allowed to see how much corporate welfare is doled out to the company. To emphasize the secretive nature of … more

GM-state electric-car deal makes headlines, does little for Michigan economy

73 jobs added to the economy in one quarter for every one job GM pledges to create

… state disappeared. To put the addition of 3,200 subsidized jobs in perspective, the Michigan Economic Development Corporation, the state’s corporate welfare agency, would have to generate the equivalent 68 new GM electric car plants every three months just to stay even with job losses. more

State Senator Tries to Fine-Tune Corporate Welfare

Nate Shannon has approved more than $1 billion in subsidies, but now aims to punish ‘greedy corporations’

… votes, he approved $1.033 billion in business subsidies through 2021. The Michigan Economic Development Corporation, the state agency in charge of corporate subsidies, announced April 26 that it was subsidizing a private project in Warren that could create 600 jobs. Shannon put out a press release the … more

‘Economic Development’ Week Skips the ‘Development’ Part

Corporate welfare claims are grand, but the results are practically nonexistent

… park. Short never received that tax credit award from the state’s corporate welfare agency, the Michigan Economic Development Corporation. Gov. Gretchen … senators voted on bills authorizing some $6 billion of this amount. Corporate welfare in Michigan usually follows a predictable pattern: There is a press … more

Auto Employment In Lansing Plunged Despite Earlier Round Of State GM Subsidies

State's media again buying same big-promises narrative as 1999

… the conservative think tank Mackinac Center, liken the program to corporate welfare for a favored few. ... MEGA is a true success story and should be … MEGA means work.” As with many media reports promoting high profile corporate subsidies awarded the state, the big job projections and promises this … more

Bipartisan Votes Send New $1 Billion Corporate Welfare Program To Michigan Governor

‘How is it morally fair to collect taxes from the thousands of businesses ... to pay out to larger businesses?’

… authorize up to $1 billion in spending on a new corporate subsidy scheme. This appears to be the largest single appropriation for corporate welfare ever authorized in this state. After flowing … incentive programs will work better than their corporate welfare programs did. ...” “Aside from that, how … more

Tlaib: ‘Corporate Dems’ Resist Biden Welfare Blowout; She Was A 'Corporate Dem' Herself As State Rep

Former state representative helped enact $1.031 billion in cash for favored corporations and developers

… support Joe Biden’s massive social welfare expansion bill, calling them “corporate Dems.” The U.S. House passed the … give taxpayer-funded subsidies to corporate interests every time she was present … Policy created. The scorecard on corporate welfare only includes votes that authorized … more

Giving Taxpayer Dollars to Some Corporations A Lucrative Business For These Nonprofits

The MEDC, the state’s corporate welfare agency, has local partners

… Spark is transitioning from corporate welfare to CEO welfare,” Nakagiri said, referring to the … using taxpayer dollars to fund corporate welfare. Government should not be in … agency that cooperates with local corporate subsidy agencies by helping steer … more

Governor, Corporate Welfare Advocates Boast That Phantom Pfizer Plant Produced Vaccines

Oops: They’ve promised to subsidize it, but facility won’t exist until 2025

… claim that is commonplace in the world of corporate welfare. It included in its statistics jobs that … December 2020. Good Jobs for Michigan is a corporate welfare scheme that delivers cash subsidies to a … those who have erroneously credited this corporate welfare program’s handouts as contributing to Pfizer’s … more

Corporate Welfare A Bipartisan Business In Michigan Legislature

16 of 18 relevant bills in the category would authorize more of it

… MichiganVotes.org website finds that corporate welfare is a popular and bipartisan … practice of offering corporate welfare to particular corporations … Two bills would limit corporate welfare, but the prospects of … limiting bills to limit corporate welfare; it would ban certain … agency in charge of corporate welfare. Instead, the money would … more

Granholm Green Energy Handout: A Glowing Promise And Cattle Feed

After getting millions from taxpayers, Alpena biogas refinery now makes a livestock ingredient

… Gov. Jennifer Granholm, the federal government and managers in the corporate welfare arm of Michigan’s state government as the future of green energy. … deal with the Michigan Economic Development Corporation, the state’s corporate welfare arm. One media report says that 33 jobs were created with the taxpayer … more

Dodgy Metrics, No Real Accountability At Tax-Funded Tourism Marketing Program

Agency may have good reason to prefer Pure Michigan’s fluff to real transparency

… Corporation. The MEDC administers the state’s corporate and industrial welfare apparatus, including Travel Michigan, which oversees … verification locked tight in its black box of corporate and industry handouts. more

Biden Blowout: Spending Bill Unnecessary and Harmful

State lawmakers must act to minimize waste

… spending, such as demonstrably ineffective corporate welfare initiatives. With another $5.7 billion coming … ineffective programs, either new or existing ones. Corporate subsidy programs are a great case in point. As … funneling the money through the state’s corporate welfare apparatus to hand out to a few favored businesses. … more

Whitmer Erroneously Claims State Taxpayer Handout To Pfizer Covered Vaccine Work

Company to get $10.5 million for plant that hasn’t been started yet

Gov. Gretchen Whitmer pitched a corporate welfare program she said helped pay for a building from which the Pfizer COVID-19 vaccine was shipped from in … the new COVID vaccines in urging the Legislature to reauthorize a corporate welfare program called Good Jobs for Michigan. Whitmer said that renewing … more

State Budget 2022: Not Too Early to Cut Corporate and Industry Handouts

Michigan needs a fair field for all and favors for none

… programs should mean fewer executives and support staff are needed. Corporate and industrial handouts do not consistently produce positive net benefits, … $600,000 in incentives offered per job. Michigan doesn’t need a large corporate and industrial handout complex to thrive. It needs a fair field for all … more

Budget 2021: State of Corporate and Industry Handouts

Lawmakers should cut unnecessary and ineffective subsidy programs

… 2019, before the coronavirus pandemic, but it was mixed in the area of corporate and industrial handouts. Funding for them was down from the previous year, … feel like they can afford to send more to the state’s ineffective corporate welfare bureaucracy. While it hasn’t returned to prepandemic levels, the trend … more

Those Who Do Not Learn from History…

Years of bad economic development deals haven't prevented politicians from trying again

… repeated failures. Take Michigan’s corporate welfare apparatus, for instance. Years … editorial raised concerns about corporate handouts in general, but it focused … 1940s has tried creating their own corporate handout program, save one. So far, … Whitmer has eschewed creating her own corporate handout department or program. In … more

MEGA Mistake: Big Corporate Welfare Program Still a Waste

State economic development incentives often don’t result in much development.

The Mackinac Center has recently released a comprehensive study of state economic development incentives that found that corporate handouts did create employment at some recipient firms but at a huge cost of incentive offered per job created per year. One of nine major areas we analyzed was the Michigan … more

Michigan's Corporate Welfare Programs Are a Bad Investment

Resources expended for these programs would be better spent on higher priorities

… an expensive and wasteful enterprise. To explore the potential that corporate handout programs have to create jobs, we used two specialized and powerful … created during the John Engler administration. It stopped handing out corporate favors in 2011, though state taxpayers are still on the hook for payouts … more

Big Power Company Looks To Be Pursuing Best Legislature Money Can Buy

Consumers Energy a big giver to 'dark money' group that targets pro-consumer legislators

… individuals in order to fulfill a mission of “social welfare.” These organizations are distinct from political … provided that they do so in support of their social welfare mission. That is why the ads about Fink mention … they’re the most accurate. They are a massive corporate special interest with the resources to fully … more

Defund Corporate Welfare Agency for Better Public Health

Higher taxes won't be as effective at eliminating smoking habits

… did the biggest single chunk of the money go? Corporate handouts. Each year since 2008, Lansing politicians … instead of kids could somehow be justified if the corporate subsidy programs funded by it were actually effective. … It's time to eliminate demonstrably failed corporate welfare spending and dedicate it to higher priorities … more

Budgets in the Time of Coronavirus

State officials should consider bold spending cuts and other reforms

… revenues flow to just Detroit. Savings: $490.0 million. End State Corporate Welfare Handouts: Providing corporations with taxpayer subsidies is perhaps … concert with the MEDC. Such funds should not be used to reward specific corporate expansions or relocations. There are better uses for these resources. … more

Economic Well-Being Tied to Economic Freedom

The best economic development tool is a free market

… well-being, not to mention other measures of human welfare. The report, “Economic Freedom of North America,” … subsidies; Government pension payments; Personal and corporate income and payroll tax revenue; Top marginal … no worse off economically by eliminating its corporate handout departments (the Michigan Strategic Fund … more

It Was 25 Years Ago Today - Michigan's Big Corporate Welfare Experiment

Marking a MEGA Anniversary

… started small and grew into a monster corporate handout program. Gov. Rick Snyder … often just amount to a windfall for corporate interests. The programs are also … their MEGA incentive. The state’s corporate handout complex made other blunders … expect them to know how to pick corporate winners from losers with taxpayer … more

Some Perspective: Michigan is Stronger Now, Part 2

Our economy recovered and grew with less corporate welfare

… learned not to rely on corporate welfare gimmicks to facilitate … a lucky few. MEGA was a corporate subsidy program which was … Governor Rick Snyder reduced corporate taxes while also decreasing … recovered and grew with less corporate welfare. Since then, policymakers … these changes by cutting corporate welfare spending even more deeply. … more

Some Perspective: Michigan is Stronger Today

The state is in a more resilient position to weather an economic storm than at any time before

… favor of a low, flat and transparent corporate income tax, and one with a rate … meant a leap upward, and today or corporate tax ranks 18th best in the nation. … state of emergency. 5. Wasteful corporate welfare spending has been curtailed. … Recession, Gov. Rick Snyder reined in corporate welfare, shuttering the expensive and … more

Reporting or Promoting?

Why transparency of business subsidy programs shouldn’t be controlled by administrators

… September 2018 since businesses may not have had time to invest, hire and report back to the state for this report.) Claims in the report that these corporate handouts increased state revenue by $4 billion are also exaggerated. The economy — at least until the coronavirus epidemic — has been up. It’s not … more

Film Incentives Don’t Generate Economic Development

Incentives are a poor use of resources

… scholarly research finds state economic development — or, specifically, corporate and industrial welfare incentives — to be ineffective and often very expensive. In April, the … more

Giving Public Dollars To Private Interests Violates The Public Interest

So ruled Michigan’s most famous jurist back in 1871

… Michigan Supreme Court decision by Chief Justice Thomas Cooley about the corporate handouts of his day: railroad subsidies. Cooley argued that taxes levied … interests and the public good, which happens to undermine beliefs about how corporate handouts can enhance the public good. Our lawmakers are the people who … more

MEDC Testimony a Reminder That More Transparency is Needed

New legislation would make the MEDC more transparent and accountable

… the public. These agencies oversee the state’s corporate handout programs. The hearing was difficult … mandates that the MEDC publicly announce when its corporate winners have become losers. The department should … more importantly to the larger question of corporate welfare programs themselves are the raft of other … more

Governor’s Budget Proposal Revisits Pure Michigan, Other Industry Welfare

There is no need to raise corporate welfare spending

… tourists to the Great Lake State. The latter is a corporate handout program that gives cash grants and loans … proposal also recommends lifting spending for a corporate welfare line item cut deeply last year by the Michigan … that study here. There is no need to raise corporate welfare spending in the state. Research shows such … more

More Attention for Interstate Compacts to Eliminate Business Subsidies

There are lessons to be learned from a recent agreement

… without competition from other states, however, corporate handouts are ineffective, expensive and unfair. … “Multilateral Disarmament: A State Compact to End Corporate Welfare.” When enough states sign onto the type … signatories. Using interstate agreements to eliminate corporate handouts is still a speculative strategy. Which … more

Michigan Lawmakers on Pace for the Smallest Increase in Business Subsidies

Legislators reduced some corporate welfare spending

… There have been business subsidies authorized in the state budget each year, though they were a small amount in 2019. Legislators reduced some corporate welfare spending, and the governor vetoed some spending on top of that. Excluding federal funds and subsidy money that was authorized for the 21st Century … more