SMALL BUSINESS URGES END TO FILM SUBSIDIES
February 25, 2015 (Lansing) – The state’s leading small
business organization, the National Federation of Independent Business (NFIB),
told the House Tax Policy Committee today that it is time to end Michigan’s
controversial film credit program. The organization testified in support of
House Bill 4122 sponsored by State Representative Dan Lauwers (R-81) that would
sunset the program.
“It is important to point out that, while we do not support
the film tax credits, the current program is a far cry from the blank check,
open-ended incentives given out under the previous program,” said NFIB Michigan
State Director Charlie Owens. “That being said, it is difficult to convince
taxpayers that the state has exhausted all possible options in realigning
spending priorities when we still have $50 Million dollars to spend on a
superfluous program like these film credits.”
While Owens credited Governor Snyder for cutting the program
back dramatically, he indicated that small business owners are still wary of
narrowly targeted economic development incentive programs.
“The Governor and legislature deserve credit for shifting
our focus away from this failed targeted approach and tackling Michigan’s
business climate directly,” said Owens. “However, even though these targeted
tax incentive programs have been curtailed significantly, they are still of
questionable value when the state struggles with the basic challenges of road
funding and other needs.”
Owens said that often targeted incentive programs quickly
become the “tail that wags the dog” resulting in valuable taxpayer resources
wasted on central planning by state bureaucrats and lawmakers trying to guess
which company or industry will be the next “big thing”.
“We have made significant progress in improving Michigan’s
business climate for all job providers,” said Owens. “It is important to keep
that momentum moving forward and end programs of questionable value like the
film tax incentives.”
