GM Gets Tax Breaks for Spending Bailout Bucks in MI
General Motors is busy negotiating new tax breaks from Michigan and not Michigan (to hold a sword over Michigan’s head). Automotive News [sub] details GM’s latest game of taxpayer dodge ball. “As laid out in a company proposal seeking tax and brownfield incentives from the state, the potential project targets five sites in Michigan for expansion, improvements, new construction, renovations and installation of new machinery and equipment.” Under the current terms of the $25b Department of Energy auto loan program, the money can only be spent on retooling old factories for production of fuel efficient vehicles, of which the Volt is GM’s prime candidate. “The MEDC [Michigan Economic Development Corporation] said it expects the Volt project to retain 14,380 jobs and generate $644.3 million in state government revenue by 2023. The MEDC recommended that the Economic Growth Authority approve a 100 percent employment tax credit for 15 years. To receive the tax credits, GM would have to retain at least 2,000 ‘qualified full-time employees’ at the five sites. The company now has 21,718 employees at the sites.” So, tens of millions of dollars in tax credits? Yup. Done deal. Wagoner pops-in to Flint on Thursday to reveal the good news. And yes, I know: they all do it.
Thats ok, the remaining people in Michigan will just be taxed more than they already are to make up for any shortfalls. If you make cars or movies in Michigan, you're alright. If you do anything else, not so much..... This will create 0 jobs in Flint. The line monkeys will just be moved to another line and I heard somewhere that the batteries will be made overseas.....
Let's give em $25 billion more! When they say retooling, they don't mean getting rid of Rick, do they?
Yes they all do it. so what is Michigan supposed to do? They're basically stuck. If they don't offer credits, someone else will and instead of only getting SOME tax revenue, Michigan will end up with ZERO. It's a stupid game and incredibly short sighted--but woe to the state that doesn't play it.