Tax abatements are when the City agrees to give investors or developers permission to not have to pay their property taxes on their proposed projects for up to 35 years. This means that they do not contribute to the schools, libraries, parks, or other taxpayer-funded public services.
They claim that this incentivizes investment, which results in job creation, but it is really just basic trickle-down economic theory, also known as "Reaganomics"...it works great for the people on top of the economic pyramid, but rarely does it ever trickle down. In post-bankruptcy Detroit, we can call it "Dugganomics."
We generated this table using the lost revenue data reported by the school district, and projected that loss for all other public institutions based on annual rates.
(General Operating and School Debt millages combined)
(General Fund and City Debt millages combined)
(All three special education millages combined)
Winter & Summer millages combined
Please keep in mind that this tax abatements total is a completely separate pile of money from tax captures; most incentivized development projects include a combination of both tax abatements AND tax captures.
THE COMBINED TOTAL AMOUNT OF MONEY STOLEN FROM US VIA TAX CAPTURES (FROM 2014-2023) AND TAX ABATEMENTS (FROM 2017-2023) IS OVER A BILLION DOLLARS!
The infographic below illustrates the quasi-governmental structure that conducts this wealth transfer. Tax abatements are outlined on the left, while tax captures are outlined on the right:
Detroiters For Tax Justice
P.O. Box 34040, Detroit, MI 48234
Copyright © 2024 Detroiters For Tax Justice - All Rights Reserved.
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