Senator Cassis, under her constitutional right of protest (Art. 4, Sec. 18), protested against the passage of Senate Bill No. 1264 and moved that the statement she made during the discussion of the bill be printed as her reasons for voting “no”.
The motion prevailed.
Senator Cassis’ statement is as follows:
As you may know, Senate Bill No. 1264 extends tax breaks already enacted in law for one entity. Specifically, Senate Bill No. 1264 provides for a refundable credit for Michigan International Speedway. The Senate Fiscal Agency estimates that the total over the next 12 years alone, and it doesn’t expire in 12 years, but over the next 12 years alone is approximately $100 million. To be exact, the estimate is $96.8 million. That comes to about $11.5 million over current law.
The real issue is refundability. Refundability means that MIS, with all likelihood, will have all their tax liability in this state wiped out; but then go beyond that and receive a subsidized check from all other taxpayers. During yesterday’s hearing, Treasury testified that MIS is a very profitable corporation and further testified that they would be expanding even without this tax break. My questions at that hearing reveal that they are not in any financial trouble, not like GM, not like Chrysler, not like so many companies in our state. They are not in financial trouble, nor in any danger of having to close down and certainly not contemplating bankruptcy.
So, I ask, why the bailout? Why the bailout of a successful, profitable business giving them this refundable credit from our already substantially depleted General Fund? To be exact, the Senate Fiscal Agency now is indicating that the budget shortfall in 2008-09 could be anywhere from $300 million to $900 million.
My friends, the bucket is leaking. It’s leaking and there is a little doorway out where even more money is flowing out to certain entities. How long will we be able to continue this raid of the General Fund? We need, in my humble opinion as Senate Finance chair, a plan on issuing refundable credits so that we can be fair and equitable to all taxpayers.
I believe that Michigan would be more attractive, more competitive if we were to go back to tried-and-true, tested tax policy of broad-based tax relief in this state benefiting all, rather than just a selected few.