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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Tax Free Zones - Coming soon to a city near you!


    By Shell, Section News
    Posted on Mon Jan 14, 2008 at 09:58:34 AM EST
    Tags: (all tags)

    I know tomorrow is the big primary election but I didn't want this jaw-dropping story to be lost in all the political noise.

    http://crainsdetroit.com/apps/pbcs.dll/article?AID=/20080114/SUB/801140334/1033/-/-/cobo-may-be-tax- free-zone

    Crain's Detroit posted a story this morning about the expansion and renovation of Cobo, specifically a legislation package set to be announced at the NAIAS this week.  The surprising bits aren't so much about Cobo as they are about Lansing's selective reasoning when it comes to boosting the state economy:

    Sweetening the deal will be a plan for "tax-free zones" extended to Michigan convention centers in which exhibitors can sell products to consumers without charging sales tax.

    Boats, electronics -- and possibly automobiles -- are included in the measure, giving the region a heavy-duty tool to recruit new shows.

    Wayne County Exec Ficano has been pushing for it but now it looks like the proposal may have Granholm's support and then some -- can you say, $150 MILLION in state funding?  It appears there's now a destination for part of that $350 million OVERPAYMENT by Michigan taxpayers.

    Granholm supports the creation of tax-free zones and also supports the expansion of Cobo, said Elizabeth Boyd, the governor's press secretary.

    She said the governor will be in Detroit to tour the auto show but would not confirm whether a public announcement is forthcoming. Boyd also would not confirm the $150 million in funding.

    I guess Granholm is waiting to confirm the funding to see if this story goes unnoticed by the rest of the state.

    Just when you think the democrats in Lansing can't twist themselves into tighter pretzels, this comes out of Dillon's office:

    House Speaker Andy Dillon, D-Redford Township, supports the idea of tax-free zones as an economic-development measure, said his press secretary, Greg Bird.

    "This is one piece of an overall proposal that we hope will help grow economic activity in Southeast Michigan and perhaps other areas of the state," Bird said.

    So Detroit and possibly Novi and Grand Rapids may be paid a visit by the tax-free zone fairy, but what about the rest of the state and businesses who service those outside metro areas?  

    Oh, I forgot.  We're just taxpayers.

    < Ronald Reagan in 1964 | At Bill Milliken's Funeral >


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    I understand the tendency (none / 0) (#1)
    by Nick on Mon Jan 14, 2008 at 10:03:21 AM EST
    to look at this as a fairness issue.  

    I guess I look at it the same way but with a twist.  How do we expand the tax break benefits to help more folks rather than how do we keep Detroit and Grand Rapids and Novi from getting over on the rest of us.

    I think the bigger issue is that the Democrats seem to recognize in the case of Cobo and other projects that tax breaks and incentives actually WORK!  In fact, without them things wouldn't get done.

    But then they turn around and tell us that they have to raise our taxes but it won't kill jobs.  I guess I'm still on that snipe hunt for consistency from the left.

    If stuff like this works (none / 0) (#2)
    by Ed Burley on Mon Jan 14, 2008 at 10:59:59 AM EST
    Why don't we do it everywhere?

    Jack Kemp, a former conservative, used to tout, along with Bill Bennett (former drug czar and violator of the 4th Amendment) that we should have "enterprise zones." This is similar to our tax free zones. The question from libertarians and paleoconservatives was "if enterprise (and in this case, tax-free) zones work (and they do), why not make the whole stinking country (or state) an enterprise zone?"

    That's the reality. Get rid of business taxes all together and watch the economy fly.

    ed


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