December 14, 2005

Tax Cuts for Companies in Michigan

Yesterday Reuters reported that Michigan Governor Jennifer Granholm will sign into law roughly $600 million in tax breaks over the next four years for large manufacturers.

Obviously the automotive industry is experiencing serious difficulties lately and passing these tax cuts is one attempt to try to "lessen the burden" to ensure the solvency of this industry.

I can't help but wonder though, if these tax incentives will actually do much good.

If companies are struggling so much that they are closing plants all over Michigan and across the region - will these incentives actually ensure that plants stay open and workers keep their jobs? Any thoughts?


At 2:51 PM, Blogger davieboy said...

Sounds like more corporate welfare to me. The big automakers need some real ingenuity to alter their buisness plans, so as to figure out how to compete with the likes of Toyota, Hyundai, Honda, etc. No amount of tax breaks for the auto industry are going to sell cars to Americans. They need to figure out how to live in peace with the unions, and build more exciting cars if they ever want to survive.


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