House Dems plan would punish companies hiring illegal immigrants
8/13/2007, 5:23 p.m. ET
By TIM MARTIN
The Associated Press


LANSING, Mich. (AP) — State House Democrats on Monday said they want to crack down on companies that hire illegal immigrants and give tax incentive preferences to businesses that hire only Michigan workers.

Companies that hire illegal immigrants could get their state contracts canceled and be barred from getting future state work. Companies that hire illegal immigrants also could lose the tax incentives they've been awarded for creating jobs.

"Michigan tax dollars should not fund grants or tax incentives for businesses that hire people from other states and countries when Michigan residents have the training and expertise and need those jobs," Rep. Fred Miller, D-Mount Clemens, said in a statement.

The Democratic proposal would require businesses with contracts for construction of state buildings to hire 100 percent of their workers from Michigan. The current requirement is 50 percent, House Democrats said.

The use of illegal immigrant labor could be a particularly sensitive issue in Michigan, which led the nation with a 7.2 percent unemployment rate in June.

A Wisconsin-based subcontractor on a wind farm project in Huron County, for example, may have had two illegal immigrants working on the project. The owner of the company says he followed federal government screening regulations and would not knowingly hire illegal immigrants. The company said a paperwork check on the two employees with Wisconsin state officials came back OK.

The Harvest Wind Farm project was promoted by Gov. Jennifer Granholm and other Democrats at a June press conference. The wind farm is supported with a state tax incentive plan worth $6.5 million over 12 years and will get about $5 million in sales tax exemptions.

The House Democratic proposals could in some cases change the policies for doing business with the Democratic Granholm administration. Granholm spokeswoman Liz Boyd said Monday the administration supports increased opportunities for Michigan workers and will be reviewing the package.

While noting the determination of who gets tax incentives is now largely controlled by the Democratic administration, Republicans said they will review the concept of promoting those incentives for Michigan workers.

"Jobs created in Michigan for Michigan workers should go to Michigan workers and anyone who knowingly hires an illegal alien should be held accountable," Matt Resch, a spokesman for House Minority Leader Craig DeRoche, a Republican from Novi, said in a statement. "It's that simple and fair."

The Michigan Chamber of Commerce said it will review the proposals once specifics are available.

"In the past, we have supported policies that encourage companies to put employees and property here," the chamber's Tricia Kinley said. "But this sounds like a punitive approach."

Under the Democratic proposal, companies that hire all of their workers from Michigan would be moved to the head of the list when it comes to awarding tax breaks and other economic development tools.

Companies that get tax breaks or other economic development incentives would have to report to the state who they are hiring.


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