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Economic Development

MEGA Industrial Policy: An Analysis of the Proposed Michigan Economic Growth Authority

By Dr. Martin Wing, Joseph P. Overton, and Robert Fish, published on March 1, 1995

Michigan has seen stellar economic progress due to Governor Engler's free-market reforms. Is MEGA a reversal of the trend? Should government pick the winners and the losers? This report analyzes proposed MEGA legislation. 16 pages.

Contents

  • Executive Summary
  • Introduction
  • What is MEGA?
    • Program Details
  • MEGA Promises
  • MEGA Problems
    • 1. Targeted tax credits have no significant impact on job creation
    • 2. MEGA would discriminate against small businesses, retail businesses, and capital-intensive businesses
    • 3. MEGA would allow certain firms to be favored over their in-state competitors
    • 4. General tax and regulatory reforms are already working
      • Table 1
      • Table 2
      • Table 3
    • 5. MEGA would be a massive realignment of Michigan tax policy
      • Figure 1
    • 6. MEGA would allow a small group of political appointees to determine tax policy for some of Michigan's largest corporations
    • 7. MEGA incentives would have to continually increase to be competitive
    • 8. MEGA would make it more difficult to lower overall tax levels
    • 9. MEGA would be difficult to terminate once established
    • 10. MEGA would increase the cost of state government
    • 11. MEGA would require companies to spend thousands of dollars and to evaluate locating in a competing state
  • Conclusion
  • Endnotes
  • Sources
SKU: S1995-03

More by Dr. Martin Wing

Make Michigan One Big Renaissance Zone

More by Joseph P. Overton

An Inside Look at the Government-School Mentality
Right-to-Work Laws Accelerate Economic Development, New Study Finds Michigan Losing Ground to Right-to-Work States

Robert Fish

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