KENNEDY: Legislators Must Reject Tax Subsidies to Save Michigan’s Economy

As the Michigan Legislature’s “Lame Duck” year-end session begins in earnest, the West Michigan Policy Forum (WMPF) is calling on Michigan legislators to disregard failed corporate welfare policies and prioritize proven pro-growth policies that strengthen the state’s economic foundation.  

In his formal letter distributed to all legislators, WMPF Chair John Kennedy urged policymakers to focus on legislation that will encourage growth. Kennedy highlighted Michigan’s track record of spending more than $22 billion on corporate subsidies since 2000, primarily targeting auto manufacturers, yet losing 145,600 auto jobs during the same period. Kennedy said taxpayer protections are regularly promised for these types of subsidies, but requirements are often relaxed as actual results underperform projections. 

“Despite overwhelming evidence to the contrary, our state has relied on the knee-jerk but flawed strategy of corporate welfare—handing out billions in taxpayer-funded subsidies to select companies,” Kennedy said. “The results of this approach are clear: an entire Lost Decade, a return of population declines, and an economic foundation that continues to erode.” 

Kennedy urged legislators to reject plans to expand the state’s Strategic Outreach and Attraction Reserve (SOAR) Fund and reinstate Hollywood film credits, saying, “Michigan’s first attempt at film credits did not go as planned, and as we know with films themselves, the sequel is never better than the original.” Instead, WMPF advocates for shifting focus toward reforms that position Michigan as a top destination for families, businesses, and innovation.  

“Let’s focus on real solutions, not subsidies, to ensure the people of Michigan flourish for generations to come,” Kennedy said.  

Suggested Policies  

  1. Education Reform: Reinstating A-F school accountability ratings and ensuring third-graders are taught to learn to read. 
  2. Business Climate: Eliminating the state income tax, reinstating Right-to-Work protections, and converting the Michigan Economic Development Corporation into a resource for navigating regulations rather than offering subsidies. 
  3. Quality of Life: Prioritizing infrastructure repairs without tax hikes, lowering energy costs, and improving healthcare access.

Contact your state SenatorandRepresentative today and tell them to stand up for pro-business, pro-economy policies. While you’re here, stay connected with the West Michigan Policy Forum for updates on policies and more.