Proof is in the Pudding
For too long, politicians in Lansing have been sacrificing our children's education and future with harmful cuts while leaving plenty of loopholes and ineffective tax loophole programs in place. MEA has been continually calling for an end to these wasteful programs and an independent study just released shows which are effective are which are not.
From MEA's release -
An independent study of the effectiveness of Michigan's key business tax incentives released today provides, for the first time, an objective comparison of existing programs that taxpayers and policymakers can use to assess whether specific incentives are worth the tax dollars devoted to them.
And the results may surprise proponents of tax incentives for business -- the study found three programs intended to spur economic development actually had a negative impact on job creation and generation of new tax revenue. Three other tax incentive programs had small or mixed results. Just two of the eight incentives studied led to more jobs and tax revenues.
"For the first time, we have an independent estimate of the jobs and tax revenue that are gained or lost as a result of these specific programs," said Patrick L. Anderson, principal and CEO of the Anderson Economic Group, which conducted the study.
Added MEA President Iris K. Salters: "This research finally provides a tool to measure the effectiveness of tax incentives so we continue with those that work -- and stop spending money on those that don't. Instead, those dollars would have far greater impact if they were invested in public education and the preparation of a high-tech workforce that is essential for job growth."
The report is the second in a three-phase research plan; the first report in May 2009 provided an inventory of tax incentives and uncovered a lack of transparency about tax incentives, their effectiveness, and other relevant information.
Both reports are available at www.mea.org/investing.
Comments
Re: Proof is in the Pudding
The excessive interest charged by payday lenders is illegal in many places, including Canada, where usury is technically limited to 60%, although the Canadian government has yet to step in to enforce the law. Such situations can cause a great deal of stress as well as the need for money and possible larger problems may arise. Together with some of the perks there seem to be a number of drawbacks involved with pay day loans that people should be aware of previous to taking such a loan. When compared to some other loan products, the fees and interest from the loan far to high. For example let's say you have take $500 as the loan amount then the charge could be as high as $50 which can be way to expensive. Also this cost will probably will begin to accrue if ever the borrower is not able to pay back the loan promptly when it truly is due.
nice post..
I love the idea of giving education a bigger part on the budget. Let us face it, recession is hitting us badly and there’s no exact time when we can fully recover from this so kit is a must that we budget as wise as we can. Several of the biggest financial mistakes go back to not running a budget correctly, or not sticking to a wise plan for budgeting. We should be generating a program that will benefit all of the people while earning. The idea is easy but I know that it is a hard task to be done.
Another part of the American
Another part of the American Recovery and Reinvestment Act was the Race to the Top, an education stimulus, which quickly went sort of unnoticed. As I read the article, the tax is the great source in funding every aspect in the government.