For Immediate Release
Nov. 6, 2019
Continued pursuit of corporate tax breaks undercuts what Michiganders, businesses really value and need
LANSING—The Michigan League for Public Policy issued the following statement on the Michigan Legislature’s expected action this week on several legislative packages to give sweeping tax breaks—and vital state revenue—to big corporations at the expense of what Michigan residents really need. The statement can be attributed to Michigan League for Public Policy President and CEO Gilda Z. Jacobs.
“Michigan residents are still awaiting resolution on our most contentious state budget yet, an impasse largely driven by a lack of revenue for all of the things residents need. And now some lawmakers want to throw good money after bad to keep courting big businesses, with little to no evidence of actual job creation. It is not good fiscal policy to give away hundreds of millions of dollars in state revenue to corporations when our state struggles to invest in education, infrastructure and strong communities—all things that businesses value. This money could go to hundreds of millions of other priorities that are more important and more useful to Michigan residents and businesses, including improving our schools, investing in the health and well-being of our people and our communities, and better supporting everyday Michigan workers and their families—not top-level executives and out-of-state CEOs.
“Besides, we’ve already been down this crumbling road before. In 2011, Gov. Rick Snyder and Michigan lawmakers gave huge tax breaks to businesses, slashing the state Earned Income Tax Credit, causing years of funding cuts to our schools and public safety and leading to the severe degradation of our roads and water systems. Our state is still paying for those cuts literally and figuratively, and has seen little in the way of stable, good-paying jobs, with unemployment going down while the number of people working but still living in poverty has remained relatively the same.”
The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.