News Story

Tlaib Has Obscenities For Opponents, But Yea-Votes For Corporate Welfare

She approved $1.03 billion worth of corporate handouts but calls them a ‘power grab’ that hurts people

Newly sworn-in U.S. Rep. Rashida Tlaib, a Democrat from Michigan, sparked an international controversy when she used an obscenity when referring to President Donald Trump and her goal of impeaching him.

Dozens of media sites wrote about Tlaib’s comment, including CNN and the BBC.

But Tlaib’s remarks in a Jan. 1 Detroit News commentary should be even more troubling to Michigan taxpayers, because in it she discussed a bipartisan practice - which she approved - that continues to cost them money.

Tlaib described taxpayer-funded subsidies given to wealthy corporations such as General Motors as a “power grab” that was “enabled by politicians who didn’t want to listen to the people hurt by their actions.”

But Tlaib’s words would have more weight if not for her own voting record on special favors for corporations when she was a member of the Michigan House of Representatives from 2009 through 2014.

Tlaib served three terms in the state House from 2009 to 2014. During those years, she cast eight votes authorizing state taxpayer-funded subsidies to corporations and developers, voting “yes” in each instance. Altogether, she voted to authorize transferring $1.031 billion in state tax money to politically favored businesses, with much of the money coming from individuals and small businesses.

In her newspaper commentary, Tlaib said the “we cannot continue to subsidize their [corporations’] greed with taxpayer dollars and get nothing in return.”

Yet rather than trying to shut down the wealth transfers, as a state representative, Tlaib took every opportunity that came before her to authorize more of them.

Here’s what Michigan Capitol Confidential reported last month on Tlaib’s history of supporting “corporate greed”:

Among the bills Tlaib approved was one authorizing a $253 million subsidy for electric car battery makers. Another one was for $228 million for a state “21st Century Jobs Fund,” which writes subsidy checks to scores of private businesses.

Here is a list of the bills, with the amount authorized by each:

$100,000,000. Senate Bill 777. Subsidize battery scheme in former Wixom auto plant. House Roll Call 469 on Sept. 10, 2009.

$253,000,000. House Bill 5469. Give subsidies to electric car battery makers. House Roll Call 676 on Dec. 17, 2009.

$365,000,000. Give subsidies to electric car battery makers. House Roll Call 96 on March 26, 2009. Senate Roll Call 83 on March 11, 2009.

$9,500,000. Senate Bill 619. Tourism industry marketing subsidies. House Roll Call 122 on March 3, 2010.

$24,000,000. Senate Bill 944. Subsidize developers’ ‘historic’ building rehabs. House Roll Call 555 on Dec. 3, 2009.

$50,000,000. Senate Bill 855. Subsidize electric car battery maker in former Wixom auto plant. House Roll Call 613 on Dec. 8, 2011.

$2,400,000. House Bill 5732. Make subsidies for developers saleable to others. House Roll Call 680 on June 12, 2012.

$228,000,000. Senate Bill 269. Authorize an extension to the ‘21st Century Jobs Fund’ for various business subsidies and other favors. House Roll Call 719 on Dec. 18, 2014.

Note: On Dec. 20, 2018, the Michigan House approved and sent to the governor a bill to again extend this last program for another four years and $300 million. The bill is now Public Act 577 of 2018. Tlaib’s last term in the Legislature ended in 2014.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

Commentary

Once a Leader, Michigan Now Falling Behind in Licensing Reform

New research shows licensing leads to large declines in jobs

A new report shows that Michigan has been a leader among the states in reforming occupational licensing laws — but the state is beginning to lag. Licensing regulations are rules that mandate people pay fees, complete certain training and coursework and pass an exam before they can legally work in an occupation. Another recent study shows that these laws reduce the number of workers in a job field by 17 to 27 percent.

In his report of late 2018, Marc Kilmer of the Arkansas Center for Research in Economics looks at occupational licensing reforms in several states, including Michigan. He notes that from 2011 to 2014, Michigan, spurred by a report from Gov. Rick Snyder’s Office of Regulatory Reinvention, delicensed six occupations and peeled back many other regulatory rules for workers. This made the state a national leader, though reforms have stalled since then.

In 2018, Michigan made some strides by preventing local governments from requiring occupational licenses for individuals or adding any requirements above and beyond what the state requires for a license. But legislation that would have provided people with criminal backgrounds a fair shake at earning a license failed to pass, as did a proposal to regularly review licensing laws on the books now. Ohio pursued similar reforms during the same legislative session and passed them with large majorities, aided by the free-market Buckeye Institute.

Some occupations have a long tradition of requiring people earn a license before they can practice — doctors, nurses, lawyers and others. But for other occupations, licensing began only within the last few decades. Since 1950, the percentage of workers who need a license to work legally jumped from 5 percent to 30 percent nationally. The figure in Michigan is an estimated 20 percent.

Unfortunately, the state does nothing to determine if licensing an occupation is actually needed or provides benefits to consumers and the public. As it stands, what the state has chosen to license appears almost arbitrary. If there are not clear public benefits from requiring a license, such a law does nothing but make services more expensive for consumers and puts needless hurdles in the way of would-be workers. Lawmakers should make fixing our occupational licensing regime a top priority in 2019.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.