MEGA Industrial Policy: An Analysis of the Proposed Michigan Economic Growth Authority
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?
- 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
- 5. MEGA would be a massive realignment of Michigan tax policy
- 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
Next page: Executive Summary
Categories: Economic Development; Economic Development, MEGA
Publication: Study
SKU: S1995-03
