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And in other news... September 19, 2007By Nick, Section News
While so much attention is rightly focused on the Michigan Democrats failure to compromise and continued insistence on a nearly $1.8 BILLION tax hike out there in Lansing there are reminders of just how important the tax debate is all over the news this morning and none of them directly reference the current budget impasse.
One could certainly draw a few conclusions, though. Lets start with the good news! The Free Press reports that a Spanish firm will be coming to South East Michigan and brining some aerospace jobs. By the end of 2008 they expect to have created 200 new jobs and project doing even more in the years that follow.
Wow. We won as a state over Georgia and Texas! What was it they liked? Well, if you listen to the administration or the company's PR people, the availability of engineers was fantastic. Now, translate their pretty little talking points into English and what they're saying is "there are so many highly skilled workers on the unemployment line in Michigan it'll be easy to fill our positions." But the availability of a well trained, hyper-qualified and woefully unemployed engineering class was only one piece of the puzzle. And here's the Governor's dirty little secret:
And there it is. Tax breaks. Surprised, aren't you? If you'd been listening to the rhetoric coming out of the Granholm, Dillon and Schauer offices this last month you'd think that the only way to attract jobs would be to automatically raise taxes on the companies looking to invest. Read on...
Some of the other projects getting tax breaks to create jobs include (according to Gongwer):
Millions and millions and millions in tax breaks. A guy might get the wrong idea and start thinking that lower taxes, not higher taxes, actually help attract jobs, investment and economic growth. Now where exactly is the disconnect in Lansing? They know enough to approve these giant incentives for businesses but they want to stick it to everyone else? Leaves a thinking observer with one conclusion. The Governor's trying to buy headlines. She gives away $2 million here and $1.8 million there and she gets her name splashed across a newspaper headline and if she's really having a good day even gets to hold a press conference with her campaign staff dressed in t-shirts bearing the name of the company coming to Michigan. Either that or the woman suffers from a split personality disorder. Talk about Jekyll and Hyde. For Michigan's sake I'm hoping she's more human and less monster as the budget negotiations continue. So are 700 workers at one of Delphi's plants in Saginaw who'll have a new boss in 2008 and cling to their jobs as long as humanly possible. The AP reports:
The remainder of the huge brake facility in Saginaw may have some Delphi work for a while after the deal goes through, but it eventually will become vacant, Jackson said. Even a new buyer couldn't save the entire operation. Delphi, you'll remember, is the company that came under intense fire in the media from the Granholm administration while they were exploring consolidation options. Not surprisingly they consolidated to Indiana when their Governor put on a full court press to try to attract them. What's the old adage about honey and vinegar? And a little vinegar seems to go a long ways as Michigan families continue to hurt in the aftermath of the manufacturer's decision. Meanwhile, the UAW continues it's marathon talks with GM but progress isn't coming along quite as well as they'd hoped and the possibility of a massive strike becomes more and more real every hour of the day. According to the Detroit News:
The industry is watching closely as GM works to craft a pattern-setting deal for U.S. automakers. Executives at Ford and Chrysler are receiving periodic briefings on the status of negotiations, though they are not privy to the full details of those talks, according to people familiar with the conversations. But that's about all that Ford and Chrysler are receiving right now. Word out of the union yesterday is that the deal the UAW reaches with GM may not fly at the remaining companies, a signal of potential catastrophe on the horizon. Whether you're a giant right-to-worker or you always look for the union label, a strike at any of the automakers would be catastrophic for a Michigan economy already hooked up to life-support. Besides, take that many employees and sit them on a picket line and I half expect the Governor, Andy Dillon and Mark Schauer to start asking for an extra couple hundred million in tax hikes to offset the "lost revenue" that'd dry up when thousands of autoworkers stop receiving income.
And in other news... September 19, 2007 | 6 comments (6 topical, 0 hidden)
And in other news... September 19, 2007 | 6 comments (6 topical, 0 hidden)
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