It's Time for State Lawmakers to Stop the Bait-And-Switch Approach to Tax Policy

December 3, 2015

The Michigan Chamber of Commerce today issued the following statements in response to Michigan Senate passage of legislation to provide tax breaks to an out-of-state company in an effort to lure a data center to locate in Michigan.

“We are very disappointed with the Michigan Senate’s decision to hastily grant hundreds of millions of dollars in sales and use tax breaks to an out-of-state company without the guarantee of a single job,” said Michigan Chamber President & CEO Rich Studley.

“Worse yet, in their rush to pass this legislation, Senators declined to protect businesses already located in Michigan by refusing to adopt a simple amendment to close the door on the Treasury Department's relentless effort to impose the sales tax on cloud computing and data services,” noted Tricia Kinley, Senior Director of Tax & Regulatory Reform for the Michigan Chamber.

“It’s time for state lawmakers to stop the bait-and-switch approach to tax policy,” Studley added. “From failed state battery credits to ineffective Hollywood film subsidies, we’ve seen this movie before, and it ends badly for Michigan taxpayers.”