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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Attention Comrade: Granholm - Cherry team trying their hands at central planning, dah?


    By Nick, Section News
    Posted on Tue Dec 16, 2008 at 07:00:59 AM EST
    Tags: (all tags)

    It is a rare day when Michigan Democrats seem to go out of their way to prove and illustrate the effectiveness of conservative principles with one breath while proving their true intentions and the lunacy of the state's current political left with the next.

    Yesterday was one of those days, and it was equal parts beautiful and frustrating.

    The big news, of course, you've probably seen plastered all over the local news on a TV or radio station near you.  There are a dozen and a half companies across the state that were just awarded big tax breaks from the administration in the hopes that they'll create jobs.  The Detroit News says that there are...

    20 projects spurred by new tax breaks that state officials say will create and retain 7,400 jobs and generate $2.3 billion in new investment in Michigan.

    The Michigan Economic Growth Authority (MEGA) approved more than $105 million in tax credits for the projects Monday. Many of the companies are now hiring engineers, factory workers displaced by the auto industry decline and others. Of the 7,400 total jobs, at least 2,200 will be direct jobs with the companies involved; the rest are jobs created at related businesses or existing jobs that will be retained.

    Paragraphs like those, about administrations like the Granholm-Cherry team Michiganders are struggling to survive today are sort of like that whack-a-mole arcade game, where you have to bop the rodent as it rears its head but they keep coming, rapid fire, and its hard to know which little fella to eviscerate first.

    Read on...

    First there's the announcement that twenty companies are going to either expand or NOT LEAVE because of tax breaks.  Two issues there, right off the top... 1) if tax breaks work and stimulate the economy and will create BILLIONS in new investment and thousands of new jobs then why aren't we granting tax breaks on a massive scale, statewide and 2) did the Granholm-Cherry administration just tacitly admit that tax breaks... gasp... work?!  The flip side of that coin, of course, is that tax increases KILL jobs and prevent BILLIONS in new investment and thousands of new jobs.  Should we expect a formal, written apology from the Governor and the Democrats in the legislature for last year's massive tax increase?

    Now about this whole "retains jobs" concept... 7,400 jobs, 2,200 of them are new and the rest are spin-off or "retained."  That means that they were jobs that were going to shrivel up, die and go away without tax relief.  That means that Michigan wasn't competitive enough on its own what with our regulatory and tax structures.  That means that we were NOT a good place to do business and companies were going to be forced to leave the state.  And the companies expanding or building in Michigan for the first time, well, forget about those without tax relief.

    The News admits as much a little further into their coverage:

    For several companies, the tax abatements announced Monday played the deciding role in tipping the scales in favor of locating in Michigan.

    "The tax break was instrumental. We wouldn't have done it in Michigan without it," said Greg Fisher of Fisher Coachworks LLC, which is going to invest $7 million to build an ultra-light hybrid bus in Livonia, creating 539 direct jobs.

    All told I'd say that makes a pretty compelling case for the effectiveness of tax breaks and the need for broad based tax relief statewide.  Imagine the possibilities!  

    Instead, what do we get?  We get the liberals running this state sitting up in their ivory towers, picking winners and losers.  Because central planning has worked so well everywhere else on the globe its been tried.  Company A gets tax relief and gets to expand while Company B gets none and will shutter their doors.  So let it be written.  So let it be done.  

    And if Michigan Democrats can't tax their way to their utopian Michigan (where bridge cards fall like rain and every temp agency waiting line passes out free gum drops) then doggonnit they're going to sue and regulate their way to total unemployment.  

    Start with bars and restaurants, where House Democrats are attempting again to move their statewide ban on smoking.  The Ivory Tower reports:

    A decade-long campaign to ban smoking in restaurants, bars and other public places could come to a head this week if six lawmakers can fashion a compromise that might allow smoking in Detroit's casinos.

    Another plan would let bars and restaurants allow smoking if they pay an annual fee to the state...

    The lawmakers they're referring to are the conferees hashing out the differences between smoking bans in the House and the Senate.  Remember earlier this year the House banned smoking just about everywhere except the Casinos in Detroit while the Senate GOP effectively killed their effort by gutting that Casino exemption.

    Now the Democrats are clamoring for the exemption to be placed back in the finished product so that they can tell Michigan job makers and small business owners how to operate.  

    The casino exemption is a telling piece of this puzzle.  There's only one reason that House Democrats want it in there... they understand full well that if they ban smoking in casinos then they are going to drive away business in Detroit which will kill jobs and hurt revenue at operations that disproportionately benefit state and local government bodies.  They're hoping you won't notice that particular admission.

    Smoking bans drive down business and kill jobs.  Period.  The Democrats admit as much, the same way they admit tax breaks create jobs, not with a press release or a news conference but by their actions, even though they try to camouflage and hide them.

    Right now it looks like the Senate GOP will effectively defend personal freedom and the rights of small business owners in this one and will stop the Democrats from killing more restaurant jobs, but technically its still up in the air.

    Even further out there is a new lawsuit filed by the Sierra Club over here on the west side of the state where the Grand Rapids Press informs us of efforts by the liberal special interest group to close down a plant on the lakeshore because of its carbon footprint.

    James DeYoung last year spewed out 785 tons of sulfur oxides, 383 tons of nitrogen oxides and 173,653 tons of carbon dioxide, according to EPA figures.

    That's a far cry from the area's biggest plant -- Consumers Energy's J.H. Campbell plant north of Holland, which put out nearly 30,000 tons of sulfur oxides, 9,300 tons of nitrogen oxides and 8.8 million tons of CO2.

    Megawatt for megawatt, Holland's DeYoung plant puts out less of those pollutants than the Campbell plant, according to a Press analysis of EPA data.

    The Holland BPW says expansion of the plant will improve emissions, but the Sierra Club said that won't make up for years of air pollution.

    Ignore, if you can, the MSM's decision to use the word "spewed" there in that first paragraph.  Because the media isn't liberal and they don't editorialize or ever let their personal opinions seep into their hard news coverage.  But seriously, that's a whole different blog post.

    So too is the broader discussion of the Sierra Club, one of the oldest and proudest lefty cash groups in the United States and an organization that counts the Granholm - Cherry team as allies and recipients of past endorsements.  (For the record.)

    More important this morning is the fact that they want to take a thriving Michigan company, one that is hoping to expand and create jobs, and shut it down completely because it dares pollute LESS than the administration's pals at Consumers Energy.

    I guess maybe the DeYoung plant shouldn't bother applying for any MEGA grants the next time the administration is picking winners and losers.

    < The mistake of relying on idealism over decency | Tuesday in the Sphere: December 16 >


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    MEGA was created by Engler (none / 0) (#1)
    by Angry White Male on Tue Dec 16, 2008 at 09:05:12 AM EST
    MEGA was created by Engler. And the 21st Century "Jobs Fund" was created by Bill Huizenga. And a signifigant number of the tax breaks given out yesterday are authorized under legislation sponsored by Sen. Jason Allen. And all the above was passed with large bipartisan majorities.

    Why do pols love this failed policy of bureaucrats picking winners and losers? It lets them look like they're "doing something" about the economy without doing the heavy lifting required to really do something, like reform labor laws and cut spending (so they can cut taxes). It's all a scam, and a completely bipartisan one. Granholm's just a cheerleader for this failed policy, not its originator or cheif architect. She's no more or less culpable than almost all legislative Repubs.

    One minor hero in this farce: Sen. Nancy Cassis cancer into outright cash handouts - "refundable" tax credits. Hemlock Semi is a huge recipient of these, and was the headline of yesterday's news.

    What's funny here... (none / 0) (#2)
    by KG One on Tue Dec 16, 2008 at 09:51:34 AM EST
    ...is that tax breaks are good for only certain entities, but the guv felt that they weren't good last year.

    I'll just sit back and watch Michigan implode...

    No supprise here. (none / 0) (#5)
    by LookingforReagan on Tue Dec 16, 2008 at 12:07:18 PM EST
    When we look at what the Liberal Lunatics have done to the economy in Michigan and nationally nothing is supprising. In less then two years the Czarina's counterparts that lead Congress have destroyed a vibrant economy and brought the world to the point of collapse. Their greed and hunger for power are the main reasons for this disaster. Jenny No Jobs is that dumb. I do believe she has taken lessons from Nancy Legosi and Barney Frank to be that stupid but the evidence doesn't lie.
    When one looks at the Federal Corporate income tax of 35% and add to that the abomination of the Michigan Business tax as it exists in it's current incarnation we have the highest corporate tax in the world. How in hell can any company or corporation survive that? Add on the cost of complying with all the stupid CAFE standards and other ignorant regulations imposed by the geniuses in Washington and Lansing and it is a wonder that the auto industry has lasted as long as it has. Mix in Ron Give-them-the-finger and his Unreasonable Auto Workers and you have the formula for one God awful train wreck that is called Michigan. So no, there is no supprise here at all. Liberals are what they are. Stupid, ignorant and useless.

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