11/18/09

Labor-state sets kickback for SEIU organizers

And they wonder why Michigan is going down the tubes

At its monthly board meeting today the Michigan Economic Growth Authority voted to give a state business tax credit worth $2 million over five years to the corporate subsidiary of the Service Employees International Union for an operation that will provide administrative services for the SEIU and other local unions. MEGA is considered the "flagship" of the state's growing empire of "economic development" programs and authorities.

The MEGA board's action was included in a press release posted on the website of the Michigan Economic Development Corporation, which says the union will invest $3 million in this entity, to be located in Wayne County's Redford Township, and was given the selective tax break "to help convince the company to expand in Michigan over competing sites in Missouri and Florida."

The press release does not explain why an entity whose purpose is "to provide administrative services for . . . local labor organizations" (emphasis added) would locate in a state hundreds of miles away. Nor whether the board considered those other state locations - one in a "Right to Work" state - to be a credible "threat," nor whether the tax break is merely a political payoff to one of the state's most politically powerful special interests - a union representing many government employees.

(from mackinac.org)

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