Plan will cap corporate payouts, end giveaways in two years
LANSING, Mich. — As a part of ongoing state budget negotiations, Senate Minority Leader Jim Ananich (D–Flint) today announced his plan to give an early end to MEGA tax credit payouts to corporations.
The state has given out billions of taxpayer dollars in tax credits to corporations since the program’s start during the Engler Administration. Sen. Ananich contends that these taxpayer dollars would be better spent addressing our infrastructure crisis than padding major corporate bank accounts.
“Michigan has no shortage of underfunded programs, whether it be K-12 schools, local public safety, or, most notably, the roads,” Sen. Ananich said. “While we’re debating where we’re going to have to make painful cuts in the budget, our state is sitting on a pot of money being held hostage by corporate accountants looking for a taxpayer-funded windfall. For a decade, big corporations have received break after break, and it’s time for them to start paying their fair share.”
Sen. Ananich’s legislation will:
At its inception, MEGA credits were intended to create jobs, and later to help financially buoy corporations struggling because of the temporary decline of the auto industry and recession. Now, many of these corporations are making record profits, but still enjoying major payouts at the expense of taxpayers. Despite Gov. Snyder ending new MEGA agreements in 2011, some of these payouts will continue until through 2032.
“We need to get our arms around exactly how much money the state is slated to give out because some of these MEGA deals were negotiated behind closed doors, but we know the number is in the billions – that’s billions with a B,” Sen. Ananich said. “Rolling back these corporate giveaways and reallocating funds to our state’s most underfunded programs will get us a long way on the journey to fund our schools, communities and roads.”
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