Ford Tax Subsidies Hidden, Why??

Not just Ford but taxpayers should know where their dollars go.

For roughly two decades, Ford tax subsidies in Michigan dished out by the Michigan Economic Growth Authority (MEGA) have remained a closely-guarded secret, along with those given to the automaker’s cross-town rivals, Stellantis and General Motors. However, just last week, the Michigan Supreme Court ruled that the Michigan Economic Development Corp. (MEDC) can no longer conceal MEGA tax agreements through the Michigan Strategic Fund, a state agency that lawmakers use to dole out taxpayer subsidies for economic development, according to The Detroit News.

Each year, Michigan rakes in around $13 billion in tax revenue and then distributes it to a number of entities, with around $600 million going to Ford tax subsidies and its fellow Detroit-based automakers. But while the public can access information related to where, exactly, many of these funds go each year, that hasn’t been the case with MEGA tax credits. That will change with this particular court ruling, however, which states that these tax agreements are no different than road budgets or anything else, and thus, deserve the same sort of treatment when it comes to releasing records.

“It’s government money – large sums of government money – being handed over to a private entity and therefore the people have to be able to be aware of it,” said Patrick Wright, vice president for legal affairs at the Mackinac Center for Public Policy, the organization that filed an amicus brief in the lawsuit that led to the Supreme Court.

Currently, the MEDC is required to disclose how much these MEGA tax credits cost, as well as any remaining long-term reliability, but not until a year after the money is spent. Those particular costs are also estimated and are paid out before other payments, as they aren’t subjected to the typical appropriations process since they are considered to be a tax code entitlement.

This ruling will bring that information to light, but it still doesn’t mean that tax credits from previous years will be disclosed. Regardless, some continue to fight this decision as they seek more transparency in this particular process. “Our view is that if there are individual companies getting it, the public has a right to know what are these companies making (in profit), who are they contributing (campaign donations) to – all of the political questions that go into outlays of public money,” Wright said

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I also don't welcome unneeded tax incentives. And those being secret is fubar. It does look a little like a hush account. It also distorts natural competition.

@jma+1hzDD34V You didn't provide any information on why the payments are done in secret or why the practice should ever have been allowed. The poster before you was quite clear that it is not ethical to do so. You merely attempted to provide some justification of the practice based upon what Europe does. You used the word normal. Normal doesn't automatically mean ethical. Europe by the way has a long history (much, much, much longer than the US) of "normal" practices that haven't actually been too ethical.

For a company that continuously talks about leadership, professionalism, etc., these secret tax credits are pathetic at best; corruption at worst. BF, JF, or MB (GM) could show some true leadership immediately (tomorrow) and disclose the past annual amounts they have received from public taxpayers and not allow the practice to continue in the future. The same could be said of our state elected officials. But what do any of those 3 individuals care about ethics - they each make tens of millions per year - that is all the ethics that they need. And the elected officials, they like the power - damn the ethics.

Politicians, media figures, and most (not all though) Big 3 employees will cover for them and provide protection from anyone that questions the practice. I sincerely believe that is what you were attempting to do -- You are a true Ford employee, it is in your genes - you are royalty (like the poster you responded to described Big 3 employees of being) -- because of your royalty, you are automatically better than your fellow neighbors in the state. You actually think you deserve the funds; you are entitled to it, even if it takes away from most of your neighbors who have far less than you.

While I don't want to disagree with below post lol I would like to add another angle to this.

Tax incentives are usually used to secure blue collar jobs in the factories. And automotive factory jobs in the western world are incredibly incentivized. As a matter of fact, so much so that Germany offered Ford an equivalent of almost 2-years worth of pay to keep the Saarlouis plant open. To no avail btw. But why that has to be a secret money pot is unclear. Especially when it's tax money. But don't worry. Europe does it all the same way. So it is normal, you know?

You are asking why the state tax subsidies for Ford, GM, and Stellantis are hidden???

They are hidden so that someone living in a city like Wayne, Taylor, or Romulus and working a much lower paying job at the local grocery store, child care center, restaurant, convenience store, etc. can subsidize the higher wages of Big 3 employees living in Rochester, Northville, or Gross Pointe, etc.; and won't know they are paying that money to Big 3 employees. Silly question -- the people in power always take advantage of the people not in power. And they don't want everyone else to actually KNOW what they are actually doing. That would be ethical - can't have that. Happens all over the world every day whether it is China, Russia, Mexico, or the USA.

And those same Big 3 employees tell us all the time how they are owed even more. And they have access to the people in power and most others do not have the same access - but they are not bullies. It is very fair because they say it is fair to them or without them they will tell you that you wouldn't have your job at the local restaurant - so shut up and keep paying them so that you are lucky enough to have the job they provide for you! Then they come into your place of business and berate you on your job performance. And on the weekends, they go to church, mosque, synagogue, etc. and tell themselves/each other how good they all are.

In summary - the explanation is quite simple. They are better people (think of them like the royalty of old Europe), so pay them. Plus it is much easier than having to ride around the countryside forcing yourselves into people homes and business while you physically stole their meager coins. Royalty is much more sophisticated and lazy these days. Now they have govt bureaucracies do the work for them "in secret - aka as hidden" without having to beat up the locals.

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Ford Tax Subsidies Hidden, Why??

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