Monday, October 30, 2006

Michigan

More problems from Up North. From WLNS.com:
Things are looking a little brighter in the capitol city these days. In May, biotech firm Neogen added 40 new jobs to the area. Just last month, a developer broke ground on a 13 million dollar mixed-use facility, and a state tax credit paved the way for a Lansing automotive supplier to add 300 new jobs.

Todd Cook, V.P. of Lansing Chamber of Commerce: "I think you are seeing some momentum happening, there's things going on."

But some say there is a proposal right now at City Hall that could stop some of the momentum right in its tracks. City council may force companies that get tax abatements to pay a prevailing wage. The proposal would ensure those companies pay better wages, benefits and hire Lansing residents, all of which Council Vice President Brian Jeffers says has been a problem recently.

Brian Jeffers: "Right now we have issues with developers hiring contractors outside of our region."
This should not be all that surprising. If government officials have the power to award discretionary tax breaks, any other scheme that increases the value of this power will be icing on the cake.

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