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    Tag: Fiscal Malpractice

    Don't Bail Out Detroit


    By JGillman, Section News
    Posted on Thu Jan 16, 2014 at 10:19:48 AM EST
    Tags: Mackinac Center, Detroit, Bailouts, DIA, Taxes, Fiscal Malpractice (all tags)

    Apparently, there is a caveat to recent 'good news' for the DIA.

    Reposted from The Mackinac Center for Public Policy in time for Rick Snyder's State of the state address tonight:

    Don't Bail Out Detroit with State Tax Dollars

    By Michael Lafaive
    The recent announcement that philanthropic foundations may donate $330 million to help the Detroit Institute of Arts, which would also help city pensioners avoid the consequences of Detroit government mismanagement, sounds like great news.

    Unfortunately, there may be a hook: A requirement that the state treasury contribute, which would convert voluntary private generosity into a coerced taxpayer bailout.

    A state bailout of Detroit is a terrible idea. It creates moral hazard and adds to the overly generous financial support the city has for years received from state taxpayers.

    And it's unfair. ~ Continued below the fold

    (4 comments, 722 words in story) Full Story

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