Lansing, MI – An unelected board in Lansing just transferred $120 million from one big corporation to another, courtesy of Michigan taxpayers.
Today, the Michigan Strategic Fund officially transferred $120 million to LG Energy Solution, which bought General Motors’ stake in a yet-to-be-opened battery plant in Delta Township. In the face of slower-than-expected electric vehicle demand, General Motors sold its stake in the project and scaled down electric vehicle sales and production company-wide.
“Add this case study to the long list of reasons why taxpayer-funded corporate handouts are a terrible tactic. The history of corporate welfare is crystal clear: politicians and big corporations make grand promises of ‘good-paying jobs,’ they always come up short, taxpayers foot the bill, and the basics like our roads and schools get neglected along the way,” said Zach Rudat, Advocacy Director for Michigan Freedom Fund. “If we really want to turn things around for Michigan’s economy, Lansing must abandon this failed game of picking winners and losers with our tax dollars. If Lansing cuts taxes, cuts red tape, and invests in the basics, everyone will reap the benefits and our economy will thrive across all corners of Michigan.”
House Republicans have proposed doing just that: cutting taxes, ending the corporate handouts, and investing in our local roads without raising taxes.
# # #
