Michigan Politics: Target 480 Plan
Michigan has long been home to some of the largest companies in the country. In fact, we have 20 Fortune 500 companies right here in our great state. Unfortunately, the average age of Michigan’s collection of Fortune 500 companies is over 80 years old. Most of these companies have been here a long time, and we have not attracted interest from new industries in decades. Michigan needs to start an aggressive campaign to lure more Fortune 500 companies to the state. The Target 480 plan outlines that by cutting three key economic development programs, and funneling that money back into an aggressive campaign to attract new large employers, the state can solidify ourselves as the key place to do business in the Midwest.
By eliminating the MEDC, MEGA, and 21st Century Jobs programs, the state would save approximately $75 Million each and every year. This could have an enormous affect on the economy. For example, a few years back, Granholm announced that one major Fortune 500 company stayed in Michigan due to $19 Million in tax breaks over the next five years. Michigan could cut 19 more deals just like this one…every single year. Even better, instead of fighting to keep companies, we could be out aggressively trying to draw in new companies every single year. Just as a quick reference point, if Michigan was able to overpay and focus on bringing in just five new Fortune 500 companies each year, we would double our total Fortune 500 presence within one Gubernatorial term.
Why is this important? Fortune 500 companies bring with them tons of jobs, lots of new suppliers, new support businesses (consultants, etc), as well as plenty of new businesses around their headquarters. By focusing on bringing new huge businesses to Michigan, you will spur a massive amount of new small businesses looking to profit off of the new industries that enter the state. You will also drive a huge amount of money into the local economies that draw the corporations in. This is a relatively high-level, simple to understand plan that outlines how we can change our focus in this state, so that we can draw in large, influential companies that will help pull us out of this recession faster. If you combine that with the Triple Zero Plan (https://toddhagopian.wordpress.com/2012/09/04/michigan-politics-triple-zero-plan/) which outlines how we can eliminate the Business Tax altogether, and this job of recruiting new Fortune 500 companies becomes even easier.
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Posted on September 4, 2012, in Michigan Politics, Politics and tagged business, business development, Governor, legislature, Michigan, politics, Public Policy, republican, tea party. Bookmark the permalink. 1 Comment.