Washington, D.C. – The American Economic Liberties Project testified before the Michigan House Commerce and Tourism Committee today against HB 5425/5426, which would create a new corporate tax incentive program under which the taxes employees pay would be diverted back to their employers.   

“There is a growing bipartisan consensus across the country that corporate incentive programs simply do not work as advertised, and a growing realization that those who claim states need to be in the incentive game to be economically competitive are peddling a myth,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project, in his prepared testimony. “Instead of perpetuating decades of failed economic development policy that has resulted in a disastrous competition between states and cities and entrenched corporate dominance, Michigan should focus on the sort of policies that foster real growth and innovation and promote local businesses.” 

Read Pat Garofalo’s written testimony here.

For more information, read “What You Need to Know About the Interstate Compact Against Corporate Tax Giveaways” here.

Learn more about Economic Liberties here.

###

The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.