The City of Detroit bankruptcy is a historical event since the city of Detroit is one of the largest cities ever filed for bankruptcy. However, the court trial will decide after considering all the facts and testimonials, if City of Detroit will qualify for bankruptcy. City of Detroit has filed for bankruptcy mainly because of financial factors such as expenditures were higher than revenues, the high level of debts and bad management.
In the audit report issued for the 2012 there were many qualified and adverse opinions with regards to the financial statements. The fact that City of Detroit filed for bankruptcy, as hard as it might be, would give the city a new start and a new way of managing and thinking. This city needs restructuring and functioning under a new economic vitality. By developing new strategic plans such as new employment opportunities and offering reliable services for its residents and businesses, city of Detroit will regain its role in the economic vitality of Michigan.
The economy of Detroit plays a key role in the economic development of Michigan. City of Detroit is known as the Motor City for the innovations in the auto industry but also for its goal diversifications into emerging fields such as information technology and advanced manufacturing. Encouraging advantage are the different tax incentive programs that city of Detroit offers.
For example, Detroit Renaissance Zone Tax includes a waiver of city income and utility users taxes, most city property taxes, county property taxes. The program applies to businesses that will conduct business within the area and are not delinquent in any local, county or state taxes and once qualified there is no need to reapply. Should our corporation consider being part of big changes in Detroit and consider the benefit of tax incentives, I would be happy to further assist in this initiative.