My “No Reverse Robin Hood” Act

We took a massive step forward in the Michigan Senate to protect your hard-earned money.

In the Economic and Community Development Committee, we officially voted to pass my latest piece of legislation out of committee. I’m calling it the “No Reverse Robin Hood Act.”

The premise is simple: If a corporation receives taxpayer-funded economic incentives to build, expand, or create jobs in Michigan, they should be legally prohibited from corporate stock buybacks for the duration of that agreement.

Public dollars must be used for public benefit. Period.

When our state hands out economic incentives, it is done with an explicit promise to the people of Michigan: that this money will build our local economy. It’s meant to expand jobs, grow a company’s footprint, invest in research and development, and lift up workers through better wages, salaries, and benefits.

What it is not meant to do is line the pockets of wealthy shareholders while local workers get left behind.

If a company takes investment of your hard-earned dollars and uses it to upskill workers, stabilize jobs, and build up our communities, you can make a fair argument that the investment benefits the entire state if those investments result in a multiplier effect (when new jobs are created, those wages would support more restaurants, shops, downtowns, suppliers etc). But right now, too many corporations are taking public money, turning right around, and executing record-shattering stock buybacks to artificially inflate their share prices.

Worse yet? These buybacks routinely happen right alongside mass layoffs. We are effectively subsidizing the termination of Michigan workers.

During our committee hearing, we heard testimony from a researcher at the UAW who reminded everyone of an important truth: stock buybacks have not always been the norm. In fact, they were entirely illegal under federal law until the SEC altered its rules in the early 1980s. Since that guardrail was removed, corporate priorities have aggressively shifted away from worker investment and entirely toward shareholder supremacy.

It is a broken system, and we are paying for it.

If this legislation passes the full legislature and is signed by the Governor, Michigan will become the first state in the entire country to ban stock buybacks for companies receiving state tax incentives.

The best part? This isn’t a partisan issue. It’s a common-sense issue. We voted this bill out of committee with genuine bipartisan support.

Thanks for being with me.

– Mallory

Paid for by McMorrow for Michigan