Opinion Essay on Government Incentives

It is not the governments role to provide incentives to business, but it is beneficial to both groups. It benefits the business which is receiving the incentive by allowing those small businesses to become successful as well as become a constituent of either a city or town with additional consumers and capable of making a profit. The people living in that neighbouring areas will get employment opportunities created for them by the government. With this new company, it may get more people coming into town and make allowance for other businesses to enter the market. As many others have already commented, there is benefit from operating an organization outside of government incentive programs, and that benefit is about owning a business, to begin with. If properly operated, the financial benefits are there. However, if a particular state is struggling with maintaining business owners wanting to operate their businesses within the state, small incentives are worthwhile. Federal tax credits also already exist, such as the General Business Credit, Form 3800 ("Forbes Welcome").

According to me, I do not agree with how Michigan has extended the tax credit for businesses. The decision has not benefited the state, but instead favored the businesses. It should be a two-way street of benefits. Michigans decision to extend its tax credits does not seem to be an optimistic choice for them. There is still lose of money despite having reformed the program to MBT, again, their revenue is not growing with the number MBTs increasing ("Forbes Welcome"). No alterations have been enacted despite the fact that they have attempted to rectify the laws. However, to prevent the MBTs from ongoing, there should be laws. Also, this is because the states revenue cannot carry on with the tax credits.

To my perspective, if a business requires incentives, then it is ethical for them to accept them. Accordingly, the encounters met by the business would be made easier with them. Also, a business should apply for an incentive if it has qualified for it as well as needs it. Moreover, it should be made accessible for all businesses. Also, it is not the fiduciary responsibility for businesses to seek government aid. My thoughts are that nothing is ever really free. For this reason, you take what you need but not what you want.

If the incentives are suitable then accepting them would not be a problem. Just as outlined by ("Forbes Welcome"), the issue comes up when big corporations that fall upon substantial debt, rely on the government to offer support to them because of their magnitude as well as the employment opportunities they offer to the neighbouring societies. For instance, AIG continued advantaging their executives at a total of 165 million dollars soon after using the bailout system of the government to the extent of 170 billion dollars. Further, it is when the accepting government incentives can go awry, and effective responses to criticism does not exist ("Forbes Welcome"). The response of the companies to receiving corporate welfare should be explained that they have the ability to apply to these incentives and that the government is the one that allows them to receive them. In addition, the government would have to change its policy for who they give tax credits to and who they wouldnt allow to receive them.

In conclusion, MBT credits will keep on reducing General Fund revenue as well as cause an increment to its volatility if there are no steps taken to restrict the effect of outstanding economic incentive awards.

REFERENCES

N.P., 2017. Web. 15 May 2017.

"Forbes Welcome." Forbes.com. N.P., 2017. Web. 15 May 2017.