Corporate welfare – using your tax dollars to subsidize Michigan businesses in the name of creating jobs – is not a new idea. But it is a terrible idea.
Michigan tried to go Hollywood in 2008 with $500 million in film subsidies… and that flopped harder than “The Love Guru.” No permanent jobs were created, and film studios bolted as soon as the taxpayer-funded handouts dried up.
Under the Michigan Economic Growth Authority, or MEGA, we saw no discernible impact on job creation. Michigan’s massive obligation to companies strained the state budget, and taxpayers are still on the hook for an additional $6 billion through 2030!
And two years ago, we tried “Good Jobs For Michigan,” a big government boondoggle rushed through to lure FoxConn to build in Michigan… and not only did FoxConn go to Wisconsin instead, but Michigan taxpayers will have to shell out $42,000 for every job promised by the poorly named package of bills. (FoxConn also failed to deliver on promises to Wisconsin. Corporate welfare recipients over-promise and under-deliver.)
Today, lawmakers want to go back to the same old well of terrible ideas. The “Good Jobs” package is set to expire in December, unless the legislature renews it. More corporate welfare, funded by your tax dollars, virtually guaranteed to have no positive impact on Michigan’s economy.
There are better ways to grow jobs and make Michigan a better place to live, work and raise a family. At a time when Lansing is struggling to come up with the resources to pave our roads and educate our kids, the last thing we should do is ask taxpayers to pony up for corporations who don’t need the money.