News Story

Whitmer Says She’s Working To Cut Costs For Families, But Won’t Sign Tax Cut That Does It

Gov. Gretchen Whitmer tweeted April 24 that she is working to cut costs for Michigan families. The governor, however, is declining an opportunity to cut their costs by signing a state income tax cut approved by the Michigan House and Senate earlier this year.

The Senate Fiscal Agency estimates that taxpayers would save more than $2.5 billion annually if Whitmer had signed the bill. It would have restored the 3.9% tax rate in effect before former Gov. Jennifer Granholm and legislators raised it to 4.35% in 2007. A 2012 tweak trimmed the rate to 4.25%, where it remains.

The tax cut passed by legislators in early March recognized that state spending has increased from $34.4 billion when Whitmer took office in 2019 to $39.1 billion in the current fiscal year. This means that the average household’s share of the budget went from $8,634 to $9,820, an increase of $1,186, according to James Hohman, director of fiscal policy at the Mackinac Center for Public Policy.

Whitmer has proposed $42 billion in state spending in the next fiscal year, tacking on another $743 per average household.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.