Jane is right — this proposal is a bad idea.

Graduates of Michigan colleges and universities who get good job offers in other states are not apt to forsake them just because of an exemption from state income taxes for a few years. On the other hand, the policy is a gift to those who would have remained in the state anyway. The policy slightly worsens the state’s budget hole but won’t do anything to address the underlying reasons why so many young people are moving out — that the long-run consequences of running the state for the benefit of the “takings coalition” are really being felt. Michigan needs across-the-board tax cuts, deregulation, and government downsizing to pull out of its economic tailspin. Inducing a few college grads to stick around won’t do it.