Small Business Disappointed with "Good Jobs" Legislation

Date: July 12, 2017

July 12, 2017 (Lansing) – The state’s leading small business organization, the National Federation of Independent Business (NFIB), expressed disappointment with the House passage of the so-called “good jobs” bills. The intended purpose of the legislation, Senate Bills 242, 243 and 244, is to attract companies to Michigan with the targeted tax breaks. Governor Snyder is expected to sign the bills into law.

 

“Michigan small business owners have seen enough of ‘good jobs’ promises through targeted tax incentives to know they don’t work,” said NFIB State Director Charlie Owens. “It is disappointing to see the governor and legislature drift back toward these quick fix economic development programs while broad based overall tax reform has been proven to be the better approach.”

 

According to Owens, the bills would create a new scheme of diverting tax revenue from employer payroll withholding to companies that promise to create jobs and are approved by the Michigan Strategic Fund.

 

“While we do not doubt the good intentions behind this legislation, they are a distraction and departure from the successful fiscal policies that have dramatically improved Michigan’s overall economic climate for all businesses and citizens of our state,” said NFIB State Director Charlie Owens. “Companies lured into the state by targeted tax incentives often end up being direct competitors to established businesses that have been in the state for years providing jobs and paying taxes without special treatment or tax breaks.”

 

Owens pointed out that targeted tax handouts to select industries and individual companies through the MEGA program, and refundable tax credits baked into the old Michigan Business Tax, were the hallmark of the failed Granholm administration and Michigan’s lost decade. “Even now, current budgets are stressed trying to account for billions of dollars given away during the last big ‘good jobs’ program,” said Owens. “We need to learn from the mistakes of the past and stick with what works over the long run.”

Related Content: Small Business News | Economy | Michigan

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