MEDC Approves Corporate Welfare for Dealership

LaFaive: Special favors unfair to competitors, taxpayers

Michigan Strategic Fund board members voted Tuesday to divert almost three-quarters of a million dollars in local and school taxes to a private entity so that a Redford Township car dealership can upgrade its facilities, MLive reports. The Michigan Economic Development Corp. will give the dealership $719,528 to renovate its building and install a car wash on an adjacent piece of land it owns.

Michael LaFaive, director of the Morey Fiscal Policy Initiative, said this type of special treatment is unfair.

“It’s unfair because this dealer no doubt competes with other dealers not lucky enough to get a government handout,” he told MLive. “Robbing many taxpayer Peters to subsidize the corporate Paul only shifts precious resources around. Evidence shows it is unlikely to create net new jobs. Worse, this is money that could have accrued to local schools. Depriving them of such revenues represents a very high opportunity cost, unless of course some future graduates intend to wash cars on the new site.”

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