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Michigan Considers Boosting Big Business With Tax Incentive ... But Where's The Little Guy?

LANSING, Mich. (WWJ/AP) — Michigan would provide tax incentives for large-scale business expansions under legislation up for a vote in the Senate.

A state Senate proposal would let companies keep the income tax holdings from employees if they can provide 250 to 500 new jobs, depending on the wages.

WWJ Lansing Bureau Chief Tim Skubick says this would be a departure from the current approach of growing jobs instead of hunting for them.

But it's not that simple.

"All of this is being complicated by one other factor, legislators don't feel like they can go around giving tax breaks to unless they give some money to the little guy, and the little guy tax break has been on hold," Skubick said.

Supporters say other states providing tax incentives are taking business opportunities and their jobs away from Michigan.

The state has moved away from such tax breaks under Gov. Rick Snyder's watch in favor of a smaller pot of grants and loans.

"This is rather interesting, when Gov. Rick Snyder came into office six or seven years ago he said that Michigan would become a gardening state and not a hunting state," Skubick said. "By that he meant he wouldn't be wandering around other states hunting for other jobs to bring back here, they would grow the jobs here in Michigan. Well, slowly over time that philosophy has kind of disappeared."

Snyder supports the concept of the legislation.

The Republican-led Senate plans to approve new incentives Wednesday because economic development officials say Michigan is losing business to states with generous incentives.

Companies also could qualify if they add at least 250 jobs that pay 125 percent of the regional average.

 

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