7-1 Discussion: Government Incentives

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Read Michigan Tax Incentives—Corporate Welfare? and A Primer on Certificated Credits Under the Michigan Business Tax.

(Note: When you click on the Forbes article, it may redirect you to the Forbes home page. To locate this article, you may need to search for the article title in the search box in the upper right-hand corner of the page or manually copy and paste the following hyperlink into your browser: https://www.forbes.com/sites/taxanalysts/2015/03/10/michigan-tax-incentives-corporate-welfare/)

Then, in your initial post, consider the following questions:

  • Is it the role of government to provide incentives to business? Why or why not?
  • Do you agree with Michigan’s decision to extend tax credits in the manner it has? Why or why not?
  • Is it ethical for a business to accept government incentives in all cases? Alternatively, is it the fiduciary responsibility of businesses to seek government aid in every instance? Explain and defend your responses.
  • How might a business that accepts incentives effectively respond to criticism that it is accepting corporate welfare?

In response to your peers, state whether you agree or disagree with their conclusion regarding Michigan’s tax credit program. Be sure to justify your response. Do you agree with your peer’s assessment regarding the ethics of accepting government aid? Why or why not?

Refer to the Discussion Rubric for directions on completing these discussions.

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