Detroit Today: Do corporate tax breaks create quality jobs in Michigan?
For years, both Democrats and Republicans have leaned on the idea that incentives and subsidies attract new businesses and create jobs.
Ford’s Electric Vehicle Center in Dearborn is among three Michigan plants that will see investment and jobs so it can build more F-150 Lightning electric pickups to meet unexpectedly high demand.
An old argument about how to grow Michigan’s economy is playing out inside the new Democratic majority in Lansing.
For years, both Democrats and Republicans have leaned on the idea that incentives and subsidies attract new businesses, create jobs and speed up opportunity. But a growing faction inside the Democratic party now says that approach needs tweaking, maybe even abandoning.
State Sen. Mallory McMorrow joined host Stephen Henderson on Detroit Today Thursday to talk about a bill package she introduced to modify the way we offer corporations tax incentives, along with two journalists covering Lansing to discuss how the argument is unfolding.
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Guests:
State Senator Mallory McMorrow is a Democrat representing Oakland County and parts of Detroit. She says corporate job incentive packages from the state should require direct investments in the community.
“We should be investing in our people, in our places, to make our state attractive without having to pay a company to locate here,” said McMorrow. “I don’t think there’s any debate in that. The question is, how do we get there?”
Lauren Gibbons is a reporter covering politics for Bridge Michigan. She says Democrats in the Michigan Senate are split on corporate tax incentives.
“The representative [State Sen. McMorrow] and some other progressives in the caucus have been a little concerned about the aggressive pushes for incentives to attract corporations,” said Gibbons.
Chad Livengood is a politics editor and columnist with The Detroit News. He says historically Michigan subsidized automotive manufacturing expansions in exchange for jobs but without consideration for community benefits.
“It can’t just be about buying the job; essentially we have to think about the community people want to live in,” Livengood said.
Listen to Detroit Today with host Stephen Henderson weekdays from 9-10 a.m. ET on 101.9 WDET and streaming on-demand.
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