Roth & Company, PC Tax Update Blog

Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

Give us money or we'll take our begging elsewhere!

November 18, 2009

$50 billion in federal subsidies isn't enough for Government General Motors. Michigan is now throwing in another $2.6 million to keep the world's largest manufacturing zombie from from moving jobs from Downtown Detroit to... "other Detroit-area facilities." GM will happily take the money, but may welsh on the jobs part:

GM's Eric Henning, vice president for state and local affairs, told the MEGA board Tuesday that no final decision has been made about transferring workers from the Renaissance Center to other Detroit-area facilities. The company needs flexibility, he said, and did not believe the minimum staffing level was to be part of the agreement.

After the MEGA meeting, Gov. Jennifer Granholm and her economic development chief clarified that the 2,500 figure is negotiable "but GM must maintain a significant presence."

It boggles the mind that a state government would pay a company to not move jobs within the state. It's the kind of governance that makes Michigan the nation's leader -- in unemployment, with a 15.3% rate.

Reblog this post [with Zemanta]

Tags: ......

      Bookmark: del.icio.usDiggreddit

TrackBack

TrackBack URL for this entry:
http://www.rothcpa.com/mt/contages.cgi/1248

Post a comment





Email: roth@rothcpa.com  •  Phone: (515) 244-0266
All content © Roth & Company, P.C.  •  Powered by Movable Type  •  Site by Sekimori Design