Please write a response to each student discussion post. Each response must be at least 200 words. Alexander wrote: Sometimes the movement does need to make incentives to business in order for them t

Please write a response to each student discussion post. Each response must be at least 200 words.

Alexander wrote: 

Sometimes the movement does need to make incentives to business in order for them to do more business in the United States and create more jobs. However, I feel there are always jobs out there like fast food stores or other places. It seems like that is the main reason why government is currently give incentives, to increase jobs. Yet I can walk into several stores and see a help wanted sign posted but a homeless person on the street without a job. Part of me questions why that person can’t have that job and do we really need that many more jobs. If it cost a lot of money for the government like the MBT, it is not worth it.

For some of these businesses, they are taking complete advantage of the system by claiming the tax credit in times when they don’t necessarily need it. I think if a young mom and pop store are opening, I can see some government relief in this case but many of these major companies have enough money to do what their looking for. However, I know there are times that some major failing companies do need help from the government like General Motors who the government doesn’t want to fail because of the amount of jobs and other contributions that the company does for the United States. Bottom line, if you are a big company and you truly can’t keep operating, the government or a vote by the people should determine at what point do we save the company from failing.

Anthony Wrote:

Is it the role of government to provide incentives to business? Why or why not?

While I don’t believe it to be the role of government to provide incentives to businesses, it does bring benefits to both the company and the city or state that is in question. Government incentives, like tax breaks attract companies both large and small in size. City and State governments can see in influx or people, which can boost the housing market and economy, while bring new jobs to the community. These incentives can benefit the company because it will allow the company to offset any losses associated with the costs of startup operations, moving, building, and training it may incur for the first few years.

Do you agree with Michigan’s decision to extend tax credits in the manner it has? Why or why not?

Michigan’s decision to extend its tax credits doesn’t look to be a positive decision for them. They provided tax credits to be used at the company’s discretion rather than setting limits on when it could be used. Since they have changed the program to MBT they are still losing money and their revenue isn’t increasing with the number MBT’s increasing (Pratt, 2015). This would have limited not only the amount of credits awarded but also ended the long-trail of payouts that the state is currently faced with. There should be laws in place to stop the MBT’s from continuing because the revenue in the state can’t keep up with the tax credits.

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.

I think it is ethical for a business to accept incentives if they are needed by the business and that it would make the challenges felt by the business easier. If the business needs an incentive or qualifies for one then they should apply for them. It should be made accessible for all businesses. However, larger established companies would need less help and should not qualify for incentives. Business should really only seek government aid if they are in need of it, applying for aid just because it’s available makes it unethical.

How might a business that accepts incentives effectively respond to criticism that it is accepting corporate welfare?

A company’s response to accepting incentives is not an issue if they are appropriate. The government would have to change its policy for whom they give tax credits to and who they wouldn’t allow to receive them. Simply accepting government incentives should not draw criticism, the criticism should only happen if the incentive is claimed unethically or if it is being spent in a way that was not its intended use.

Reference

Pratt, E., Savino, C., & Zin, D. (2015). State notes. Michigan Senate. Retrieved from http://www.senate.michigan.gov/sfa/publications%5Cnotes%5C2015notes%5Cnoteswin15lpcsdz.pdf