Michigan Lawmakers Giveaway over $7 Billion in Subsides

Taxpayer Funded Business Subsidies: Profits & Tax Breaks for them “Higher Taxes” for us Citizens

Business Subsidies or Road Tax Increase? In May you will decide at the Ballot Box. What do Lansing lawmakers do when they commit “grand theft” of our road fund monies on subsidies for economic development instead of on Michigan roads?

They let the taxpayers hang themselves by voting on a ballot proposal “tax increase” holding our roads hostage if we don’t vote yes.

The MEDC is like a bad movie titled, Michigan Taxpayers Subsidize the Wealthiest Businesses or how Michigan Taxpayer Funded Subsidies supply funds for Corporation profits.

“These subsidy awards are getting out of control,” said Philip Mattera, research director of Good Jobs First and principal author of the report.

http://www.wcpo.com/money/local-business-news/new-study-ranks-ohio-third-in-the-award-of-large-public-subsidies-for-company-expansion

Jennifer Granholm pursuing Toyota engineering center Economic Money

In 2005, Toyota landed a $38.9 million tax credit from the Michigan Economic Development Corp.’s Michigan Economic Growth Authority (MEGA) board to fuel the expansion of its technical center in York Township.

http://www.annarbor.com/business-review/bob-lutz-criticizes-jennifer-granholm-for-pursuing-toyota-engineering-center/

Michigan Taxpayers Pony Up Subsidies for Toyota…Yet Again!

What’s the old saying, third times a charm? In this round of taxpayer funded subsidies The Michigan Strategic Fund has awarded the automaker another $4 million. In addition to this subsidy, Toyota received a State Education Tax Abatement with an estimated value of about $1.3 million.

http://www.detroitnews.com/story/business/autos/foreign/2014/12/18/toyota-invests-ann-arbor/20580241/

MEDC Approves Incentives for Toyota

The Michigan Economic Development Corporation announced that Toyota has been awarded $4 million. York Township is additionally considering approval of local incentives in the form of a 12-year property tax abatement that could save the company up to $4.6 million.

The project was secured through a collaborative effort involving MEDC, York Township and Snyder’s Ann Arbor SPARK.

http://www.economicdevelopmenthq.com/blog/michigan-economic-development-incentives-toyota-jobs/

One of Ann Arbor SPARK board of directors are: Charles Gulash, vice president, Toyota Motor Engineering & Manufacturing. Can you say conflict of interest?

http://www.annarborusa.org/about-us/news/SPARK-announces-new-board

This isn’t the first incentive dance Toyota has been to. In 2008 as a Campaign Manager for a State Rep. candidate I attended a meeting with him in York Township and he spoke at that meeting against the first subsidy. The promise then was 400 jobs that never materialized!

Toyota said it plans to build a new facility on its Michigan campus “subject” to final approval of state and local “incentives” to accommodate the 250 workers. That subject to “local incentives” is code word for us the Michigan taxpayers who will pony up through the “failed” MEDC just mark my words!

http://www.freep.com/article/20140428/BUSINESS01/304280056/toyota-moving-texas-los-angeles

Toyota moves bolster Michigan Tech Center with Taxpayer money

http://www.detroitnews.com/article/20140428/AUTO0104/304280038/0/auto01/Toyota-shift-North-American-HQ-Texas-add-jobs-Michigan

Toyota moves thousands of jobs from socialist California to capitalist Texas

Why not the “Comeback State” Michigan? I’ll tell you why it’s no different than California! Michigan will get 250 jobs in Snyder’s Ann Arbor if the taxpayer subsidies are sufficient which they already received in 2008.

http://winteryknight.wordpress.com/2014/04/29/toyota-moves-thousands-of-jobs-from-socialist-california-to-capitalist-texas/

Toyota & 5,000 Jobs to Leave California for Texas

http://thepeoplesrepublicofcalifornia.blogspot.com/2014/04/toyota-5000-jobs-to-leave-california.html

Take a look at the incentives Toyota received from different state and local offices to locate their plant in certain locations. From Wikipedia: Toyota has received a little over a billion USD in federal, state, and local government tax subsidies and incentives including: * $323.9 million in subsidies for the plant in Tupelo from Mississippi taxpayers. * $371 million in subsidies for the Georgetown plant from Kentucky taxpayers. * $227.5 million in subsidies and tax incentives for the Tundra plant by Local, Texas, and U.S. taxpayers.

Michigan has the most megadeals, with 29, followed by New York with 23; Ohio and Texas with a dozen each; Louisiana and Tennessee with 11 each; and Alabama, Kentucky and New Jersey with 10 each.

“Megadeals” are defined as taxpayer funded incentive packages (subsidies) worth more than $75 Million. This does not include those subsidy giveaways under the $75 Million benchmark such as the Film and Movie Producer subsidies given away here in Michigan or smaller business subsidies.

In dollar terms, New York is spending the most, with megadeals totaling $11.4 billion. Next is Michigan with $7.1 billion, followed by five states in the $3 billion range: Oregon, New Mexico, Washington, Louisiana, and Texas. Twenty-one states have megadeals costing $1 billion or more.

Some of the deals involve little if any new-job creation; indeed, one in ten of the deals involve the mere relocation of an existing facility, often within the same state and sometimes within the same metropolitan area. Some of these retention deals were granted in so-called “job blackmail” episodes.

The La-Z-Boy Corporation in Monroe pulled one of these so-called “job blackmail” episodes when it threatened to move out of Monroe unless the taxpayers of Michigan provided subsidies for building their new headquarters, the MEDC caved and awarded then up to $12.7 Million in taxpayer money.

La-Z-Boy Awarded $3.7 Million “Plus” from The Michigan Strategic Fund

Furniture maker plans to build a new world headquarters in Monroe after state approval this week on a $3.7 million incentive package. This “taxpayer funded” package could be worth $12.7 million over nine years when the package’s grants and tax breaks are combined and that is contingent on La-Z-Boy adding 50 jobs.

Dan Swallow, director of economic and community development for Monroe, said the two grants and the tax abatement were paramount to keeping La-Z-Boy fully committing to staying in Monroe. The company had stated it would remain in Monroe if everything could be worked out, but if it couldn’t, it might be forced to go to another county or state.

http://www.toledoblade.com/Retail/2012/12/21/La-Z-Boy-a-big-step-closer-to-new-headquarters-Michigan-OKs-3-7M-aid-for-50M-project.html

Right after La-Z-Boy got our tax dollars the company reported third-quarter profits that soared. Michigan-based La-Z-Boy said Tuesday its operating income was up 37 percent in the fiscal 2013 third quarter, to $23.3 million, compared with $17 million in the same quarter of 2012. The company ended the quarter with $112 million in cash and equivalents.

http://www.prnewswire.com/news-releases/la-z-boy-reports-fiscal-2013-third-quarter-results-191882971.html

Are corporate subsidies worth the money? 

http://www.cbsnews.com/news/are-corporate-subsidies-worth-the-money/

History of the MEDC: The Michigan Economic Development Corporation (MEDC) was started by Republican Governor John Engler expanded by Democrat Governor Jennifer Granholm and put on steroids by Governor Rick Snyder.

The Michigan Jobs Commission (MJC) By Joseph P. Overton and Aaron Steelman, published on April 1, 1996

https://www.mackinac.org/5327

Study: Michigan Economic Development Corporation Published on May 4, 2004 (Now Part of The Department of Labor and Economic Growth)

http://www.mackinac.org/6561

A Brief History of State Economic Development By Michael D. LaFaive, published on Oct. 6, 2005

http://www.mackinac.org/7375

THE LOCAL DEVELOPMENT FINANCING ACT – Act 281 of 1986

http://www.legislature.mi.gov/%28S%28iwwxm445lieanr555ydmnd2v%29%29/mileg.aspx?page=GetObject&objectname=mcl-Act-281-of-1986

Governor John Engler appoints Board of Directors for the new Michigan Economic Development Corporation. The two most notable board members are Governor John Engler (general chair); Rick Snyder, Avalon Investments, Inc., Ann Arbor (chair)

http://www.michiganbusiness.org/press-releases/engler-appoints-board-for-new-michigan-economic-development-corporation/

Rick Snyder’s two Venture Capital Companies Avalon Inc. hit with liens for unpaid taxes

http://www.annarbor.com/business-review/rick-snyders-venture-capital-companies-hit-with-liens-for-unpaid-taxes/

John Engler assumes leadership as Business Roundtable Preesident. Business Roundtable (BRT) is an association of chief executive officers of leading U.S. companies working to promote crony public policy.

http://businessroundtable.org/engler

Economic Development Subsidies Report Megadeals: By Philip Mattera and Kasia Tarczynska with Greg LeRoy. “Megadeals” are defined as taxpayer funded incentive packages (subsidies) worth more than $75 Million. This does not include those subsidy giveaways under the $75 Million benchmark such as the Film and Movie Producer subsidies given away here in Michigan or smaller business subsidies.Economic Subsidies by State 1

Click “Full report” in the link below to view how over $7 Billion of your tax dollars has been wasted on subsidies here in Michigan since 1986.

http://www.goodjobsfirst.org/publications/megadeals-largest-economic-development-subsidy-packages-ever-awarded-state-and-local-go

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Companies Leaving Michigan – “Comeback State Fantasy of Fiction”

1 comback-forbes-on-snyder The list continues to grow as companies are leaving the state closing their doors or filing for bankruptcy. The rhetoric coming out of Lansing doesn’t match the reality. People are still struggling to find full time employment as to make ends meet for themselves and their families and the bad news continues.

The signs are not good all around our state and businesses will go where they feel they can best prosper and it’s not here in Michigan. When you have third world country roads because our legislators continue to “steal” our road fund dollars for other state spending purposes plus the fact so many municipalities and school districts are going under emergency managers what else can we expect.

Below is just a very small sample of companies that have left and we are not counting the ones that have either went out of business or have filed for bankruptcy protection. Some have merged with other businesses as to try and keep afloat (ACO & Ace Hardwares) but with the direction our legislators are taking the state it’s just a matter of time till they to will fail. A1 ACO_Ace_Hardware_320_240

By giving huge tax breaks to big corporations all for corporate campaign donations to those we elect to serve us “We the People” (under the guise of economic development and job creation) and leaving the small business owners to fend for themselves while balancing these favorable tax breaks on the backs of the working middle class, poor and small business owners it’s a recipe for failure. 3 PulteGroup

Pulte’s Atlanta Move Stuns State, Business Leaders and Politicians
The PulteGroup said it will relocate about 325 Michigan jobs for the new headquarters in Georgia. Employees who do not make the move will receive severance packages.
http://www.freep.com/article/20130531/BUSINESS06/305310055/PulteGroup-Bloomfield-Hills-Atlanta

Medical Supply Company Leaving Michigan for Tennessee
The Canton offices and production facility of a medical supply company will close this fall and 145 people will be laid off as it expands operations in Tennessee. 2 Bankruptcy
http://www.freep.com/apps/pbcs.dll/article?AID=2014304110111

Coldwater Creek Files for Bankruptcy, Stores to Close
Michigan loses yet more jobs as another business goes belly up! Michigan has 12 Coldwater Creek stores and all employees will be affected.
http://www.lansingstatejournal.com/viewart/20140411/BUSINESS/304110031/Coldwater-Creek-files-bankruptcy-protection

Companies Lay-Off Thousands, Close Stores, Affects “Michigan Workers” 6 a-tsunami-of-store-closings-layoffs

A Tsunami of Store Closings and Layoffs
I’ve been posting and reporting this for months now while some choose to blow off my reports even going as far as saying the economy is doing much better! 

That day of reckoning, some say, has arrived, with one retail watcher predicting a “tsunami” of store closings this year.
http://www.detroitnews.com/article/20140308/BIZ02/303080019

Hewlett-Packard Expands Job Cuts by another 5,000
The computer company will eliminate 5,000 more jobs than originally planned, bringing the total number of layoffs to 34,000 by October. Hewlett-Packard employs thousands of workers here in Michigan.
http://www.bizjournals.com/albany/morning_call/2014/01/hewlett-packard-expands-job-cuts-by.html Diapers & Food

RadioShack to Close up to 1,100 U.S. Stores
The Company didn’t immediately identify which stores will close or how many jobs would be affected. A call to the company, based in Fort Worth, Texas, was not returned Tuesday afternoon. RadioShack employs thousands of workers here in Michigan.
http://www.detroitnews.com/article/20140304/BIZ02/303040046/0/BIZ02/RadioShack-preps-ax-up-1-100-U-S-stores

Staples to Shutter 225 stores
It’s is unclear how many jobs will be lost or what locations will be shuttered. The company did not immediately return a call from the Associated Press early Thursday. Staples employ thousands of workers here in Michigan.
http://www.detroitnews.com/article/20140306/BIZ02/303060051/0/BIZ02/Staples-shutter-225-stores-sales-move-online

Denver-based Quiznos to file for Bankruptcy
Quiznos operated about 5,000 restaurants at its peak in 2008, but the count has since dropped to an estimated 2,100 worldwide, including 1,400 in the U.S. 10 Quiznos

There are numerous Quiznos restaurants located throughout Michigan that employ thousands of workers. Quiznos is the second-largest submarine sandwich shop chain in North America, after Subway.
http://www.denverpost.com/business/ci_25241309/quiznos-preparing-file-bankruptcy-protection

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Campaign Fundraising has very “Questionable” Union Donations to MIGOP Republicans

Rebranding the GOP

So you think your voting for a Republican? Better check the candidate your casting your vote for because if you don’t you may not get what you think! This statement says it all. Amber McCann, spokeswoman for Senate Majority Leader Randy Richardville, R-Monroe said:

“It’s not a shock to see large contributions from “Unions” like the International Brotherhood of Electrical Workers, Operating Engineers Local 324, and the Regional Council of Carpenters to the Democrats.” Oh Really?

Amber McCann actually cut her teeth in politics in former Democrat Governor Jennifer Granholm’s administration.  “When I was interviewing for Senator Richardville’s press secretary position they asked me how I knew I was a Republican, McCann recalls. And she said, “My dad told me that growing up.” My dad is a guy that likes to watch Fox News.

http://domemagazine.com/profiles/pro032511

Here are some examples of “Union Campaign Donations” to so-called Republican Sen. Richardville and there are many others! Compiled from the Michigan Secretary of State’s web site, Ballotpedia and Follow the Money.

Michigan State Senate 2010 election – Campaign Contributions
Michigan Regional Council Of Carpenters $6,000

ELECTRICAL WORKERS, IBEW EDUCATIONAL COMMITTEE
RICHARDVILLE, RANDY J, MI, 2002-2010, 8, $2,140

FRIENDS OF RANDY RICHARDVILLE 512613-CAN DIRECT
MICHIGAN COUNCIL OF CARPENTERS
3800 WOODWARD AVENUE SUITE 1200  DETROIT
MI 48201-0000  12/08/05  $5,000.00  $5,000.00

MI COUNCIL OF CARPENTERS
02/23/10 $1,000.00 $1,000.00

SEIU Union Scandal
Senators Randy Richardville and Roger Kahn believe there is merit in this Thievery by the SEIU union!
http://www.mackinac.org/images.aspx?ID=15943#4013

Additional Sources: http://www.freep.com/article/20140216/NEWS06/302160060/Early-tally-state-legislative-races-shows-fund-raising-imbalance

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