Tax Breaks vs. Economic Benefit

Steven Gardner writes:

Seriously, I’m going to stop posting these news items from other states one day, one day soon, but I thought this news from Michigan would interesting to this audience.

Read carefully, because the story indicates the track gets a break on new income it generates. It’s also worth noting that MIS is expected to pay $2.1 million in taxes, while Bremerton was estimating an annual estimated income of $473,000.

15 thoughts on “Tax Breaks vs. Economic Benefit

  1. Those numbers are meaningless since they don’t factor in regional transportation issues of the track and the fianacing of construction and operation of the track. Was the Michigan track built on a peninsula surrounded by water

  2. At least ISC pays taxes in Michigan–that’s something. Here, they wanted a tax-free deal. I suppose they will keep the pressure on Michigan to eliminate all taxes for ISC eventually. “Wouldn’t wanta lose a race date, would ya?”

  3. I am a little disappointed that you still aren’t using that great invention I told you about Jake, it’s called a MAP. Michigan IS a peninsula surrounded by water.

  4. Thats’ a stretch Colleen. Just like when a track supported tried to compare the Kitsap Peninsula to Florida. The numbers are hardly the same.

    Michigan is 97,990 sq mi large while Kitsap County is only 566 sq mi. That is over 170 times the size of Kitsap.

  5. Michigian has been so hard hit by the foolish decisions made by the auto industry that teachers have been pink slipped all over the place and important programs have been eliminated. While an absolutely beautiful place to visit and live, Michigan is in a serious state of depression. There is no money for anything in the state coffers.

    Which is just another reason that I fought NASCAR here. Obviously the impact of the track there was not positive or Michigan would be faring better.

    I figured why trust the lies and the snake oil salesmen. They’ll tell you anything.

  6. I can say there are minimal traffic issues and cost to operate the track is minimal. For $400 million in revenue it’s well worth the two weekends per year that it operates. Even better is the drive in. Those rolling Irish Hills are almost as beuatiful as being back around Puget Sound. I did say almost, though.

    Looking forward to attending the August race at MIS this year. Though nothing will top my first experience last year. My favorite driver won, and it was only 70 degrees and sunny. It will likely be back to the muggy 80’s when I go this year!

  7. Steven,

    So what’s the point here? Selling our souls to the devil? Where does the so-called income go? In a more pristine environment like ours, how do the trade-offs compare? Tongue in cheek footnote: More tax revenue, more governmental spending. Why bother? What are the needs?

  8. From Michigan –
    I’ve lived her for 6 years now, and seen the downturn first hand. It has NOTHING to do with any money spent on MIS by the state. It has to do with the state being dependent upon a single industry that is going through consolidation and downturn. It has to do with a state being dependent upon taxes from workers that would be making close to minimum wage in any other state – i.e. the wages were unsustainable from the beginning and are now being cut due to market realities. The Big 3 have screwed up along the way, but the die was cast as soon as the US government opened up the market to foreign competition. The Big 3 were built up around 90% market share because that’s what they had until the 70’s. It is has now dropped below 50% for the first time in the history of the industry. Something has to give. That has a far larger impact than any small incremental state fund for expeanding the existing track.

  9. That was my point exactly, Rich. thank you for expressing it so well. Michigan is cutting back on educational and social programs. It has cut support for its colleges and cultural centers. There are cuts all over the place. Michigan is bleeding.

    MIS has not had a positive impact. So, I looked at that and wondered why we should trust ISC’s and Jan Angel’s assertions that the track would be a lifesaver for Kitsap.

  10. Not In Michigan, so the $275,000 in charitable cash donations to various organizations in your community had no positive impact? Neither did the “in-kind” donations for local auctions, the donation of time, resources and equipment by the speedway for community events? What about the big blood and bone marrow drive hosted by the speedway on September 11 every year. Did that help to save any lives in your community? You can’t say it does NOT have any positive impact for Michigan.

  11. Colleen, My company raises tens of thousands of dollars for Cancer research every year. Get’s to write a lot of it off too.

  12. Rich, that’s cool. Tell them thanks for doing that. Just because they can write it off does not mean that a tax deduction should cast a negative light on their motivation and does not reduce the number of people that money truly helps.

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