People's Platform NEWS
Vol. 22, July 2022
6 Myths about Tax Incentives
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