“MICHIGAN MUST CONTINUE to offer certain strategic tax incentives ... Otherwise, we will simply lose new business opportunities ... Eliminating incentives is a form of unilateral disarmament that would relegate Michigan to the bottom of the heap among all states. However, all incentives must include protections for taxpayers that include regular audits .”

— Virg Bernero ,Lansing mayor, Democrat

“WHEN GOVERNMENT GETS in the business of picking winners and losers in the marketplace, we all lose. We must recognize the top two creators of jobs are business startups and expanding businesses. We must concentrate on reducing the tax burden for all Michigan companies rather than a select few.”

— Mike Bouchard , Oakland County sheriff,

Republican

“THE BEST JOB CREATION policy is a low tax rate on all job makers and individuals. ... My plan will slash the Michigan Business Tax in half on the way to eliminating it and roll back the 2007 income tax increase, moving Michigan from the third worst business tax climate in the nation to one of the 10 best.”

— Mike Cox , state attorney general,

Republican

“AS GOVERNOR, I PLAN to conduct a top-to-bottom review of all of the state’s economic development efforts, including the use of tax incentives. Those incentives that work well will be retained, those that are not will be eliminated. We need to take a close look at every opportunity to spur growth and create jobs in cutting-edge technology sectors.”

— Andy Dillon , state House speaker,

Democrat

“THE GOVERNMENT NEEDS to get out of the business of picking winners and losers ... We need to provide economic freedom that encourages risk-taking, attracts investment and allows job creators to make a return on their investment. We need to get the bureaucracy out of the way, streamline the government, cut costs and overhaul the tax code.”

— Pete Hoekstra ,congressman, Republican

“ TARGETED TAX INCENTIVES have a role in recruiting migratory businesses to Michigan but need to be carefully crafted so as not to hurt incumbent businesses. I have voted to add transparency to our tax incentive program and to scale back our film tax credits, which are overly generous.”

— Tom George ,state senator, Republican

“ TAX INCENTIVES ARE OVERUSED in Michigan because we have an uncompetitive business and tax climate. Attracting a few out-of-state companies to come to Michigan isn’t going to result in long-term economic recovery; we have to focus on growing small businesses and allowing entrepreneurs to succeed.”

— Rick Snyder , businessman, Republican

RESEARCH: Shandra Martinez

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www.mlive.com 75¢MONDAY, JULY 19, 2010

H ere’s my not-so-bold prediction about the future of using tax

incentives to lure jobs and investment to Michigan:

Regardless of who wins the governor’s race in November, most of them will remain intact.

And that goes for Michigan Economic Growth Authority credits, which Republicans profess to hate, claiming they unfairly pick winners and losers.

Or so they say in the heat of an election-year battle.

But the next governor, be he a Democrat or Republican, is not going to take Michigan out of the tax incentive war. The reasons are pretty simple.

No company offering to bring hundreds of jobs here is going to do so unless state government throws in a tax incentive sweetener.

And no Michigan company seriously considering relocation to another state will stay without a special tax break.

Whether incentives are an effective method of creating jobs is almost irrelevant.

The states are playing the incentives game at such a competitive level that they have conditioned businesses to expect a big break for adding jobs.

“Before we all start talking about doing away with incentives, every candidate should be doing some research on what other states are doing,” said Birgit Klohs, president of The Right Place, a local economic development agency in Grand Rapids.

“Our competitors are offering more, and we can keep up or get out of the game,” she said.

But if you think the next governor is going to turn down a wind turbine plant promising, say, 500 jobs, or let a General Motors Co. assembly plant move out for want of a tax break, you must be dreaming.

Critics of the incentives say Michigan would be better off if it

SEE HAGLUND, A2

TO OUR READERS: Michigan 10.0 is the name we’ve given The Press’ 10-part monthly series. It’s wordplay on software upgrades, but it also underscores that 2010 will be critical to creating a better version of our state. Every month until November, we explore key questions facing Michigan.

— Paul M. Keep, editor

TAX DOLLARS AT WORK: Greg Main, chief of the Michigan Economic Development Corp., responds to problems with the incentives. A2

RICK HAGLUND

MICHIGAN BUSINESS

JOIN THE CONVERSATION: MLIVE.COM/MI10

MOST GOVERNOR CANDIDATES SAY TAX INCENTIVES FAIL TO GET JOB DONE

DON’T TAX, DON’T TELL

WORST-KEPT SECRET OF CAMPAIGN MAY BE THAT LURES TO BUSINESS WON’T BE GOING AWAY

Join the conversation on tax incentives with two of the leading voices for and against on an MLive.com chat at 12:30 p.m. Tuesday.

COMING TUESDAY

AGAINST “In short, these incentive games do not work.”

— Michael LaFaive, of The Mackinac Center for Public Policy

FOR “I am yet to deal with any client who has not asked up front what are the incentives.” — Birgit Klohs, development executive

Day 4: From Lansing to Grand Ledge, 17 miles. 9 hours. Urban river tells its own story.

BY JEFF COUNTS

THE GRAND RAPIDS PRESS

Morning: The paddle started in the backwaters of Lansing’s power dam, with three smoke stacks looming, our

destination for the fi rst of two portages as we pass through. This city is evidence it’s an urban river, a forgotten “lost high-way” of commerce that once helped farmers get grain to market,

The backwaters smell musky, rank, like they’ve been sitt ing st i l l too long. They have. A

scientist among the paddlers tells us the river runs at about 3 mph, and it takes about four days for the water we’re sitting in to hit Lake

Michigan. The waters constantly clean the ground, removing our fi lth and instead of helping it move, we dam it, keeping our sewage around

SEE RIVER, A10

THE GRAND TOURDISCOVERING OUR GRAND RIVER

RIVER JOURNAL, DAY 4: LANSING TO GRAND LEDGE

As expedition hits Lansing, urban obstacles slow riverPaddlers portage around

two dams, glide downtown near the Capitol

TRACKING THE STORYThe Grand River expedition 2010 is continuing its two-week journey that began Wednesday.

Next leg: Grand Ledge to Portland. Launching around 7:30 a.m. from Jaycee Park, arriving at Thompson Field. Want to know more? For information, including how to join the paddle for a day, go to michigan.sierraclub.org/issues/greatlakes/articles/GRE2010.html

PRESS PHOTO/REX LARSEN

Big city views: Gloria Miller, 84, right, smiles as she and Kathy Kulchinski and other expedition members paddle into downtown Lansing and a big change of scenery.

ON mlivehome: mlive.com

More photos of �Day 4 at mlive.com/grandriver

MOREPhotos of the �

trip, A9

FROM LAWNSTO RACETRACKMowers compete for bragging rights — and a good cause, C1

THE GRAND RAPIDS PRESS MONDAY, JULY 19, 2010 A9

Smokestacks and buildings send an unmistakable message Sunday: This is now an

urban river. Cars may buzz on the expressways into and around the capital city, but there was a highway here before any of them: the Grand, which was once used

by European explorers of this area. The waters here show the effects of urban living, from the smell to their slow migration. But as the Grand River heads out of Lansing, it starts taking on more natural characteristics — and promises even more personality changes.

CAPITOL JOURNEYPRESS PHOTOS/REX LARSEN

Gliding ahead: Kevin Williamson and the expedition paddle into downtown Lansing on Sunday.

Industrial scenery: The group paddles past the Lansing Board of Water and Light, Otto E. Eckert Station, after portaging around its dam on the Grand River.

Quick snooze: After a morning of paddling, Christian Miller, 13, of Grand Haven, rests during a lunch break in Lansing.

Sharing the moment: Pat Raimer, 72, laughs with other kayakers as they paddle toward downtown Lansing. Raimer said the expedition is bittersweet because she had planned to share the experience with her husband, George, who died last year.

A view for visitors: Jessie and Robin Turner, on the River Trail in downtown Lansing, watch boats passing.