Mike Bouchard wants to end Michigan’s tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. programs, broaden bases, and lower rates for everyone:
He said luring businesses with taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. credits, such as those offered by the Michigan Economic Growth Authority program, “is not sound economic policy.”
“If you have to give that kind of incentive to get a company here, (the business climate) is not what it should be,” he said.
He said eight of 10 jobs are created by small business and Michigan tends to chase two companies around the globe at the expense of the eight small companies already here.
“Our job is to create an environment, not pick a company,” he said.
Bouchard said he’d amend the state’s generous film credit program to make sure film companies that get the breaks hire Michigan businesses and employees.
And he is completely right. Detroit should not cater to a minority of businesses and the governor’s job is not to decide in which direction the city’s industries should grow. Alas, Bouchard is running 4th in a five person race. For more on Michigan’s love of tax credits (especially for a auto-makers) see this blog post.
More on Michigan here.
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