Skip to main content
Michigan’s nonpartisan, nonprofit news source

Your support can help us meet our year-end campaign goal!

We’re in the homestretch of our year-end fundraising campaign, and we’re so close to our goal. Your support of any amount means so much to us, and helps us inform Michigan’s residents and communities. Will you support the nonprofit, nonpartisan news that makes Michigan a better place? Make your tax-deductible contribution today!

Pay with VISA Pay with MasterCard Pay with American Express Pay with PayPal Donate

State government gives more tax breaks than it collects for schools and general government

Who doesn’t love a tax break? In Michigan, there are tax breaks galore – $27.5 billion of them this year. Business tax breaks. Homestead tax breaks. Sales tax exemptions on items like food, prescription drugs and many services (from your accountant to your hairdresser).

Called “tax expenditures” in government parlance, these tax breaks are $7 billion more this year than they were in 2000 (after adjusting for inflation). That’s a 36-percent increase in state-mandated annual tax breaks since the beginning of the century.

Michigan gives more in tax breaks every year than it collects in tax revenue to pay for most government operations (the general fund) and schools (the school aid fund).

Tax breaks exceed ongoing revenue

How impactful was this article for you?

Business Watch

Covering the intersection of business and policy, and informing Michigan employers and workers on the long road back from coronavirus.

Thanks to our Business Watch sponsors.

Support Bridge's nonprofit civic journalism. Donate today.

Only donate if we've informed you about important Michigan issues

See what new members are saying about why they donated to Bridge Michigan:

  • “In order for this information to be accurate and unbiased it must be underwritten by its readers, not by special interests.” - Larry S.
  • “Not many other media sources report on the topics Bridge does.” - Susan B.
  • “Your journalism is outstanding and rare these days.” - Mark S.

If you want to ensure the future of nonpartisan, nonprofit Michigan journalism, please become a member today. You, too, will be asked why you donated and maybe we'll feature your quote next time!

Pay with VISA Pay with MasterCard Pay with American Express Pay with PayPal Donate Now