Michigan’s Business Tax Incentives: ‘Some work, others don’t’

New MEA-commissioned research points to lack of transparency for corporate tax breaks

Every Michigan parent knows that a good education provides jobs, but tax breaks for select businesses have mixed results according to a new study released Thursday, May 14.  MEA commissioned Anderson Economic Group to research the millions of dollars in business tax incentives that are meant to spur economic growth in Michigan. AEG’s research found “enormous variations” in the effectiveness and bottom-line returns of these incentive programs, along with a troubling lack of transparency in reporting the results of these major taxpayer investments.

“We aren’t against using tax incentives to grow Michigan’s economy,” said MEA President Iris K. Salters. “We want to make sure these incentives work as effectively as possible, especially when our schools are struggling with budget cuts.

“Business owners repeatedly say that workforce quality is more important than tax breaks in choosing where they locate. Public schools prepare that workforce, which is why investing in public education is the best investment we can make for our economic recovery.”

Read more, including MEA’s press release about the research and the full report from Anderson Economic Group.

More about “Investing in Michigan’s Future”

An investment in public education has far greater return for the economy than any other possible investment by our state.

That’s the premise of “Investing in Michigan’s Future,” formerly known as MEA’s TEF Initiative (Tax Structures, Economic Development, and Funding for Education).  Learn more about the background of Investing in Michigan’s Future/TEF at www.mea.org/tef.

Updated: November 6, 2009 8:25 AM