Gov. Gretchen Whitmer welcomed 11,000 jobs added in Michigan last month.
“Michigan’s economy is strong and getting stronger every day,” Whitmer said in a statement. “In December 2021 alone, we added 11,000 jobs, and since December 2020, we’ve created 220,000 jobs. We’re rounding out eight straight months of job growth, unemployment is decreasing, and we still have billions from the American Rescue Plan and the Bipartisan Infrastructure Plan to invest in our families, communities, and small businesses. I will work with anyone as we continue putting Michiganders first, getting more Michiganders back to work, and growing Michigan’s economy.”
Despite a global pandemic and thanks to federal stimulus packages, Michigan flipped a projected $3 billion deficit into a $7 billion surplus.
Now, lawmakers have to decide how to spend that money to spur long-term economic growth. Whitmer signed a bipartisan economic development package that aims to give large tax breaks to private companies, focusing on the auto industry.
A recent report from Business Leaders for Michigan ranked Michigan 29th nationally for the business environment but noted many other states outpaced the Wolverine state.
Companies large enough to attract the subsidy would benefits, but only those.
John Mozena, president of the Center for Economic Accountability, a nonprofit organization for transparent economic development policy, told The Center Square that Michigan should focus on lowering taxes and barriers to work if it wants to attract talent.
Every business pays the corporate tax, but only some get subsidies, Mozena said.
“In reality, economic growth comes not from big businesses,” Mozena said in a phone interview. “Big Businesses are already big – they’ve done their growth – that’s why they’re big. Economic growth really comes from small businesses growing into big businesses and bringing the community along with them.”
House Appropriations Chair Rep. Thomas Albert, R-Lowell, advocated for giving some of that surplus back to taxpayers.
“Michigan taxpayers fund state government through their hard work and sacrifice,” Albert said in a statement. “Runaway inflation brings more tax revenue to state government at the expense of hard-working taxpayers, hurting their family budgets. With state tax revenue projections well ahead of previous expectations, it is time we talk about tax relief rather than increasing ongoing government spending.”
Albert said he plans to spend one-time federal money to improve the state without spurring ongoing costs.
This article was originally posted on Whitmer celebrates last month’s addition of 11,000 jobs in Michigan