Tax-Subsidy Programs Fuel Budget Deficits

Michigan’s corporate-tax incentives helped jump-start the state’s lagging economy, officials say, but now those same curative measures are hurting the state’s budget.

During the past two decades, Michigan promised companies, including its fabled car makers, more than $10 billion in corporate incentives. These subsidies are fueling a $325 million shortfall in the state’s general fund this fiscal year after a pair of tax credits were unexpectedly cashed in a few months ago.

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