News Story

Whitmer ‘Tired Of ... Corporate Tax Giveaways’ But Voted For Dozens

Don’t tell progressives, but Dem legislators are among corporate welfare's best friends in Lansing

Democratic gubernatorial candidate Gretchen Whitmer has tried to play both sides of the fence when it comes to her position on corporate welfare.

The candidate debuted a new 100-second campaign commercial on Thursday. In the video, Whitmer says she fought against Gov. Rick Snyder’s “corporate tax giveaways.”

“Because I’m tired of corporations getting more tax breaks, while you get hit with a retirement tax,” Whitmer said.

Yet earlier in March, at a Michigan Economic Developers Association forum, Whitmer had a completely different stance on giving subsidies and tax breaks to businesses selected by political appointees.

MiBiz.com reported: “Democratic candidate and former State Senator Gretchen Whitmer gave perhaps the most full-throated endorsement of ramping up the use of targeted tax incentives, saying that if elected she would ‘unleash the MEDC’ to pursue a ‘52-week jobs blitz’ in her first year in office. In many ways, that strategy shares similarities with the incentive-based policies of former Gov. Jennifer Granholm — whose efforts were derailed by the economic downturn, according to Whitmer."

The MEDC is the state agency in charge of Michigan’s corporate welfare programs.

MiBiz.com also reported Whitmer saying that "under Snyder, the state has eschewed many economic development tools such as brownfield and historic redevelopment tax credits in favor of a strategy that embraces lower and simpler taxes."

"These are crucial pieces of the toolbox that communities need across the state," Whitmer said of the targeted credits. "I think the approach right now in Lansing has been a drag on Michigan’s comeback."

MiBiz.com continued: "Whitmer’s proposal to bring back a variety of tax credits and more targeted incentives stands in contrast to her GOP opponents as well as her fellow Democrats seeking the nomination in the August primary."

Whitmer didn’t respond to an email sent to her campaign asking for her stance on corporate welfare. But her voting history shows clear support for giving state taxpayer subsidies to particular corporations and developers selected by politicians and political appointees.

For example, Whitmer voted in favor of creating a “Next Michigan Development Corporation” program that gives cash and tax breaks focused primarily on owners of businesses near Detroit’s airports, dubbed the "aerotropolis."

She voted in favor of giving $50 million to a company that wanted to make electric car batteries in 2011. In the 2000s she voted to give taxpayer subsidies worth hundreds of millions of dollars to solar panel and electric car battery makers.

And in 2008, Whitmer voted for a state film incentive program incentive program that eventually gave $500 million in Michigan taxpayer dollars to Hollywood producers. In 2014 she voted to extend the program indefinitely, but the Legislature elected at the end of that year instead terminated film subsidies the following spring. During Whitmer’s tenure in the state House and Senate, she and her Democratic colleagues were nearly unanimous in favor of these and many more special interest subsidies and tax breaks.

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.

Editorial

Public Schools’ Advocate Reports Added Spending Didn’t Help, Considers More

Amber Arellano, executive director of Education Trust-Midwest, recently wrote an op-ed in The Detroit News about a report her group put out on how the state’s public schools have performed on standardized tests.

Arellano wrote: “Michigan’s third-graders show the greatest decline in third-grade reading compared to peers in other states, but these learning declines are about triple that of the next closest state for this measure, despite the fact that state leaders have invested nearly $80 million in recent years to raise third-grade reading levels.”

Two paragraphs later Arellano mentions increased funding as a possible solution to the problem.

ForTheRecord says: If spending $80 million didn’t make a difference, maybe more money isn’t the answer.

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.