Michigan Steps Aside for Stimulus

Oregonian brewers looking for a new home may want to consider moving to Michigan where a state authority may just understand the principle that fewer regulatory burdens on businesses actually increases economic growth!

The Michigan Economic Growth Authority (MEGA) provides tax credits to businesses that move or expand operations in the state.

The Michigan Economic Growth Authority (MEGA), the state’s response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Single Business Tax (SBT) to companies expanding or relocating their operations in Michigan.rockon1

One business making headlines by taking advantage of the MEGA tax breaks is the Michigan Brewing Company— which announced plans to create a Kid Rock inspired vintage.

They were granted a $723k tax credit that they’ll get over 7 years. So, it isn’t much compared with the billions of tax payer cash the fed is doling out, but is something, if only a symbolic example of a regulatory body that gets it.

Someone in Michigan actually understands the concept of regulatory competition and the fact that business people can choose where they set up shop and that those choices bring money into the state. Not only does Michigan understand this, they are choosing the honey route rather than the much more common tactic of penalizing businesses (such as taxing companies that choose to brew in other states) .

It would be nice if, rather than selectively granting a retroactive reprieve from the theft of wealth, the state of Michigan would reduce the tax and regulatory burdens on ALL businesses in the state. Until then, I’m going to raise a glass to the MEGA for being an example of regulatory measures that will actually have some benefit. Maybe the fed will get a clue.