Michigan pays $860M in subsidies to politically favored businesses
By Tom Gantert | Michigan Capitol Confidential
Michigan is expected to pay $860 million for economic development credits and programs in fiscal year 2014 and most of that money is slated for politically favored business such as Hollywood’s movie industry, according to the Michigan Department of Treasury.
“The spending we are doing on economic development is large,” said James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy. “And the majority of these expenses are for decisions made years ago. The state shouldn’t be in the business of awarding tax money to favored industries.”
Michigan could certainly use that money. Gov. Rick Snyder has requested $1.2 billion in road funding and drivers across the state are dodging potholes on well-worn roads.
at Michigan Capitol Confidential.