Corporate Handouts Run Amok
July 14, 2017 MichiganVotes weekly roll call report-Posted by Jack McHugh on July 14, 2017 at 12:00pm
The Legislature met for one day this week, for the purpose of authorizing a new round of state subsidies for certain corporations. The next session day is scheduled for Aug. 16.
Senate Bill 242, Authorize giving state revenue to a few particular corporations: Passed 71 to 35 in the House
To authorize giving up to $200 million worth of state tax revenue to certain business owners, in particular a foreign company said to be involved in iPhone manufacture. Earlier this year the Legislature also authorized up to $1.8 billion in state payouts to companies owned by Detroit developer Dan Gilbert and possibly some others.
Senate Bill 244, Require state disclose which companies get of selective corporate subsidies: Passed 71 to 35 in the House
To require the state agency in charge of granting special corporate tax breaks and subsidies to disclose the companies that receive the cash payments authorized by Senate Bill 242 (previous bill).
The agency has claimed that some $9 billion in ongoing corporate handouts authorized by an earlier subsidy program called MEGA are exempt from disclosure, citing the same tax return confidentiality provisions that apply to regular taxpayers. (Around half of those payments are reportedly collected by the Big Three automakers.) An amendment to also disclose details of those handouts was defeated on a voice vote.