Landmark study finds some highly touted Michigan tax incentive programs ineffective
An independent study of the effectiveness of Michigan’s key business tax incentives provides, for the first time, an objective comparison of existing programs that taxpayers and policymakers can use to assess whether specific incentives are worth the tax dollars devoted to them.
And the results might surprise you: Some tax incentives intended to spur economic activity actually result in fewer jobs for Michigan workers and less revenue for state and local governments, according to the report by Anderson Economic Group.
The study, commissioned by MEA in partnership with the National Education Association, analyzed eight specific tax incentive programs; it identified three such programs that actually showed significant negative results.
Read the press release or the full report.
Report supports key part of coalition’s plans
The MEA-Anderson Economic Group report reinforces the need to reform Michigan’s business tax incentives as part of a balanced approach to solving our state’s budget woes, part of the agenda from A Better Michigan Future coalition.
Investing in Michigan’s Future – Important Upcoming Activities
Check out this report distributed at the MEA Bargaining, Political Action and Public Relations Conference that outlines the next steps planned for Investing in Michigan’s Future.
Watch the School Funding Summit
Check out the webcast from the School Funding Summit held on January 8 at www.LifeinLansing.com.
To follow along with the presentations, here are the handouts being distributed to all attendees:
- Summit Agenda (PDF)
- Keeping Our Promises (PDF - 8MB file, PowerPoint Presentation)
- Full Handout Packet (PDF – 8MB file, please be patient – includes all PowerPoint Presentations)
- Michigan Prospect Proposal A Analysis – 2005 (PDF)
- Michigan Prospect Proposal A Policy Recommendations – 2005 (Word)
Hundreds attend School Funding Summit
Next step: Overhaul broken system
Hundreds of educators, school board members, administrators and others attended a School Funding Summit Friday in Lansing.
The first part of the day featured presenters who provided information about the importance of investing in Michigan’s children, basic information about how school funding works now, and state demographics. In the afternoon, participants listened to experts discuss why Michigan’s school funding system is broken and what the state can do to ensure that it doesn’t fail students.
Related:
Read handouts from the School Funding Summit and listen to a webcast of the event.
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: March 4, 2010 5:36 PM