Posthumus, Rodriguez: Close forced labor loophole in state’s economic development
Whether you love or hate Michigan’s long history of courting companies with the use of tax incentives and subsidies, most people in the state agree that we have reached a new era in economic development. In both scope and tenor, our discussions about when, how and to whom we should and should not give taxpayer dollars in exchange for the promise of jobs is shifting.
So, we’re also asking what ethical responsibilities policymakers have when giving citizens’ money to companies for the purpose of economic development. That’s a good thing, and the potential for tax dollars to end up funding and perpetuating forced labor ought to be part of the discussion.
Forced Labor Funding on Michigan’s Big Show
Free Human Project co-founder Diana Rademacher joined Michael Patrick Shield on Michigan’s Big Show to discuss how state-level tax incentives and corporate subsidies can contribute to forced labor abroad. Two bills introduced in the Michigan House and Senate in September would prevent state tax dollars from being given to companies with known ties to forced labor.
Michigan bills would prevent state funding of companies using slave labor
“Taxpayers should never pay for the exploitation or forced labor of other citizens, here or abroad,” said Diana Rademacher, co-founder of the Free Human Project. “Untangling supply chains to end modern slavery will require every level of government intervention as well as private, corporate cooperation…Michigan now has an opportunity to set tremendous ethical precedent by ensuring no company who appears on that list receives even a dime of Michiganders’ hard-earned tax dollars in any form.”
Bills to Prevent State Funding of Forced Labor Would Set National Precedent
Bills introduced in the Michigan House and Senate today would set a national precedent on state-level funding of companies connected to forced labor in the global supply chain. HB 5959, sponsored by Bryan Posthumus (R-Cannon Township) and an identical Senate bill, SB 1015, sponsored by Joe Bellino (R-Monroe), would prevent the state from entering economic development deals with companies that appear on the Uyghur Forced Labor Prevention Act (UFLPA) Entity List.