A review of business incentive deals approved by Michigan’s Democratic government trifecta reveals the party’s rhetoric on corporate welfare doesn’t match reality.
“Taxes are much higher than they need to be because Michigan politicians continue to finance one of the most expensive corporate welfare programs in the country. Lawmakers could afford to cut the state income tax significantly if they would just stop lavishing select businesses with taxpayer subsidies,” the Mackinac Center for Public Policy noted in its October 2024 “Blueprint for a Brighter Future.” “Instead of authorizing $4.5 billion in corporate incentives during a single legislative term, Michigan could have eliminated businesses taxes for everyone. Taxing all businesses to redistribute the proceeds to just a few is unfair and ineffective,” the MCPP reported.
In 2023, the year Democrats took over majority control of the Michigan Legislature, taxpayer funded corporate subsidies skyrocketed from less than $1 billion the year prior to well over $4 billion. The total has since swelled to about $4.6 billion in the current term that runs through Jan. 8, 2025, with additional bills pending in the lame duck session that could push that figure to $11 billion, the Mackinac Center reports. A breakdown of lawmakers who have voted in favor of the spending between 2001 and this year shows 61 Democrats approved 100% of business incentive deals, while a dozen Republicans have approved none.
Analysis: Michigan Democrats Become Party of Corporate Welfare
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