May 23, 2005
The State of Michigan plans to give Toyota a 39-million-dollar tax break to build a tech center near Ann Arbor.
This is on top of a gift of the land itself for the bargain basement price of 11 million dollars – 14 million less than the highest bid for the land. All together, this comes to 53 million dollars the state is giving Toyota.
According to the announcement, 400 jobs will be created by this new facility. The gifts from the state come out to a total of about $132,500 per job!
This assumes that Toyota actually "creates" this many jobs. A recent study by the Michigan state auditor showed such claims of job creation usually don't nearly materialize – which often hasn't prevented the company involved from enjoying the full tax break.
Michigan's state government claims to be deep in a budget crisis. It sure doesn't stop them from throwing big bucks to big corporations!