Michigan Democrats threatening to pull $2 billion tax credits from GM
LANSING (WJBK) - Lansing Democrats are threatening to pull $2 billion dollars in tax credits from General Motors--
In the wake of the automaker's decision to layoff Michigan workers, Michigan Democrats are threatening to pull $2 billion dollars in tax credits from General Motors.
On a scale of 1-10 the impact on this state, State Sen. Morris Hood (D-Detroit) considers this a 10.
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"Whenever we lose one job, two jobs, and the amount of jobs we're losing -- I consider it a 10," he said.
Next March, GM's Detroit-Hamtramck Assembly plant is history, and in June, the workers at Warren Transmission Operations are also out of work.
Democrats in the Michigan Legislature are now on a mission to repeal the state's $2 billion tax credits for GM. The Senate Democratic leader argues the state, local and federal governments saved GM -- and now this.
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"The whole point was to make sure the jobs were kept. So I think we have to take a serious look at claw back legislation, that says if you don't meet your obligations, if you don't meet your promises, that those mega-credits have to be looked at, taken away," said Jim Ananich, (D-Flint).
But it's highly unlikely the Republican governor and a GOP-led legislature would do that. In fact, a west Michigan Republican believes that GM made the right decision to secure jobs for the future.
"It's just a natural shift in the way the world works," said State Sen. Dave Hildenbrand (R-29th District). "I'm not in favor of holding back state aid for a business making difficult decisions when they're trying to make it in a difficult economy."
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State Sen. Curtis Hertel, Jr. (D-East Lansing) says their first concern has to be the families impacted by this so close to the holidays.
Legislation to take away the mega-credits has been introduced.