Media Covers McHugh's Committee Testimony

Few jobs, little transparency for Michigan corporate welfare machine

Senior Legislative Analyst Jack McHugh’s Feb. 18 testimony to a House committee received attention in media outlets including WOODTV, Detroit Free Press, The Detroit News, Grand Rapids Press, Lansing State Journal, WZZM 13, Battle Creek Enquirer and HometownLife.com. Members of the House Tax Policy committee expressed concern about the $9.38 billion tax credit liability estimate from Michigan Economic Development Corp (MEDC), a nearly $3 billion increase from previous estimates. McHugh’s testimony also questioned the lack of economic development and transparency from the MEDC.

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The Mackinac Center has done hundreds of news articles and commentaries about the lack of jobs generated by the MEDC's Michigan Economic Growth Authority (MEGA) tax credit program, which was eliminated in 2011 but is in the news because the state budget is taking a hit due to past deals.

A 2009 study and 2005 study found that state corporate welfare programs exaggerated job claims and cost more money than they were worth. Numerous reports from the Michigan Auditor General found similar results.


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