6 Myths about Tax Incentives
in Detroit

City says: Development will not occur in Detroit “but for” the tax breaks.

• The market drives development, not tax incentives.
• Detroit is in demand and has value.
• Development has and can occur in Detroit without tax breaks.

City says: It’s the only way to grow the general fund.

• The general fund has barely grown over the last few years.
• Most of the increase is due to casino activity and NOT land development from tax incentives.
• Detroit’s growth model gives developers the land almost tax free. In return they give us taxable jobs.

City says: There is no harm done to Detroiters, only benefits.

• Tax incentives lead to underfunding and contribute to the underfunding and closure of schools and libraries.
• Incentives are used to build luxury housing that displaces longtime residents.
• About 9% of Detroiters are pushed out of Detroit due to lack of affordable housing.

City says: Tax incentives create much needed jobs for Detroiters.

• Detroit has given away hundreds of millions to developers but the city has been losing jobs, not gaining them.
• The jobs that are created unevenly benefit Downtown and Midtown and whites over Black Detroiters.
• Income for white workers have increased 7x higher than Black workers.

City says: Tax Incentives support small businesses.

• While some may benefit there are problems with DEGC managed programs like Motor City Match.
• Very competitive, not accessible and there is racial disparity in support.

City says: There is no other way.

• Utilize Community Benefit Agreements for greater equity.
• Promote cooperatives and public ownership and lease; negotiate better deals.
• Say NO and let market demand for Detroit lead to development without incentives.

People's Platform NEWS Vol. 22, July 2022