Detroit, October 15, 2019: SUPPORT THE UAW/GM STRIKE, DEMAND THE STATE OF MICHIGAN RECOVER BILLIONS IN MEGA TAX CREDITS TO GM!

DEMAND THAT THE STATE OF MICHIGAN RECOVER BILLIONS IN MEGA TAX CREDITS TO GM IF IT REFUSES TO KEEP PLANTS OPEN AND END TEMPORARY LABOR

DEMONSTRATE TUESDAY OCT. 15 – 4:00 PM

STATE OF MICHIGAN BUILDING

3044 WEST GRAND BLVD, DETROIT

(between Cass and Second Avenue)

The community at large has a material interest in solidarity with the UAW-GM strike and its battle to reverse General Motor’s plant closings and lay-offs, and replacing full-time jobs with “temporary positions”.

General Motors doesn’t pay Michigan state taxes. GM gets MEGA tax credits that last for another 20 years. GM can claim the tax credit any year it makes a profit. GM and the Michigan Economic Development Fund made a sweetheart deal to hide the amount of the credit, estimated to total at least $3 billion.

The MEGA tax credit states: “The Company will retain jobs and manufacturing operations at any facility in the State of Michigan,” and has language prohibiting relocations. Employment levels at the affected plants must be no less than 34,750 retained jobs, defined as a full-time job where the worker is employed for at least 35 hours per week, and that pay at least 150% of the federal minimum wage (temporary workers don’t qualify as workers under this credit). GM has violated the spirit and intent of these tax breaks.

If GM persists with its closings of the Detroit/Hamtramck Assembly Plant and Warren Transmission, and replacement of full-time workers with temporary positions, the state has the duty to rescind these tax credits and demand repayment from General Motors for tax breaks already received.

In addition, GM is violating the terms of the $68.1 billion dollar federal bailout it received during the 2009 bankruptcy. To date $8.9 billion of that amount has never been repaid by GM, despite returning to record profits in the years following the bankruptcy.

In exchange for the bailout, GM signed an agreement to abide by the Energy Independence and Security Act, 42 USC 17013 which mandated that the company build fuel efficient vehicles. GM’s plant closing announcements in 2018 blatantly and flagrantly violated this agreement and law. The plants they shut down produce the Volt and the gas efficient Cruze, while GM shifts to more profitable gas-guzzling SUVs and trucks.

GM also pays no federal taxes. The Detroit Free Press reported that General Motors paid no federal taxes for the past ten years. For 2018, when GM reported a profit of $7.916 billion, the corporation actually received a $104 million tax refund.

Called by: Moratorium Now Coalition

313-680-5508       @MoratoriumNowCoalition

SUPPORT THE UAW/GM STRIKE

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