After the Detroit News ran a column promoting business tax credits in Michigan, the CEA's John Mozena responded a letter to the editor pointing out the fundamental flaw in the original column's argument: Howes writes that "incentives are built on a crucial assumption: that new jobs create new tax revenue." However, that's not the truly … Continue reading Detroit News Letter to the Editor: Tax credits don’t change business realities
Michigan - where the CEA is headquartered - is considering renewing and expanding a tax credit program known as "Good Jobs for Michigan" that by some estimates is costing taxpayers $40,000 per job. CEA President John C. Mozena attended the Michigan State Senate Economic and Small Business Development Committee hearing at which testimony was being … Continue reading Open Letter to Michigan’s Senate Economic Development Committee on “Good Jobs for Michigan” Tax Incentive Expansion
We're often asked what we would recommend for alternative economic development policies to the traditional ineffective and costly incentive-and-subsidy model. Our answer is that while the specifics will vary from state to state and city to city, there's an important common thread: Make your community a good place to live and do business. That's obviously … Continue reading Incentive-free economic development: In Michigan, that means auto insurance reform.
Michigan's governor has proposed the nation's largest gas tax to pay for repairing the state's decrepit roads. In this week's Crain's Detroit Business, CEA President John Mozena offers an alternative: The fairest, least disruptive and most effective way to unlock more funding for our roads would simply be to unwind Michigan's massive — and massively … Continue reading Op-ed in Crain’s Detroit Business: Money for roads hidden by corporate tax breaks
In the Detroit News, CEA President John C. Mozena makes the case that development subsidies are an issue outside the normal political partisan spectrum: From whatever angle you come at it personally, there’s a growing agreement that this isn’t a Right versus Left battle, but rather a case of “Us versus Them” — people with … Continue reading Detroit News op-ed: Michigan can’t afford bipartisan corporate welfare