State government gives more tax breaks than it collects for schools and general government

Who doesn’t love a tax break? In Michigan, there are tax breaks galore – $27.5 billion of them this year. Business tax breaks. Homestead tax breaks. Sales tax exemptions on items like food, prescription drugs and many services (from your accountant to your hairdresser).

Called “tax expenditures” in government parlance, these tax breaks are $7 billion more this year than they were in 2000 (after adjusting for inflation). That’s a 36-percent increase in state-mandated annual tax breaks since the beginning of the century.

Michigan gives more in tax breaks every year than it collects in tax revenue to pay for most government operations (the general fund) and schools (the school aid fund).

Tax breaks exceed ongoing revenue

Like what you’re reading in Bridge? Please consider a donation to support our work!

It takes time, money, and hard work to inform Michigan readers and leaders with substantive, in-depth, future-oriented news and analysis. If you value our journalism, please consider a one-time donation or a monthly contribution. It takes just a moment to donate here. Please join the thousands of Bridge readers who are helping grow and sustain our nonprofit, in-depth public service journalism in Michigan.

Pay with VISA Pay with MasterCard Pay with American Express Donate now

Comment Form

Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.