Capitol News

State Representative Greg Alexander has strongly criticized Governor Gretchen Whitmer's approach to reforms that involve an income tax hike on working families in Michigan. Alexander argues that the increase in the income tax rate will have a detrimental impact on workers, their families, and the overall prosperity of the state.

According to Alexander, the income tax hike is a result of the Democrats' need to balance their excessive spending in the current budget. He believes that this approach is backward and will ultimately cost workers and their families. Alexander states, "Democrats needed to raise the income tax to balance their out-of-control spending with the current budget, and this year workers across our communities and the state will be keeping less of what they earn."

The individual income tax rate in Michigan has increased from 4.05% to 4.25%. This increase is due to legislative maneuvering that did not fulfill a promise to return more money to hardworking taxpayers. The income tax rate had been lowered last year as a result of a 2015 law that required a reduction if state revenue grew faster than the rate of inflation. Alexander fought to preserve the income tax cut, emphasizing that Michigan will be at a disadvantage in attracting and retaining jobs and residents by increasing taxes.

Highlighting the state's financial situation, Alexander points out that Michigan started 2023 with a $9 billion surplus, but it has now been depleted due to $82 billion in spending commitments for the current fiscal year. He expresses concern that the burden of the budget spending will fall on hardworking people in areas like his, while larger population centers will benefit.

In response to the income tax hike, a Republican proposal has been introduced in the House to immediately lower the state income tax rate to 3.9%. This proposal is based on data from the Mackinac Center for Public Policy, which shows that states with income tax rates below 4% have seen a 5.7% increase in jobs since the pandemic, while states with rates of 4% or higher have only seen a 2% increase. Michigan is even further behind, with job numbers still 0.6% below pre-pandemic levels.

Alexander stresses the importance of finding sound solutions that respect taxpayers and their financial struggles. He believes that asking them to contribute more to support the state government's budget will not help families, improve the economy, or foster the growth of the state. He concludes, "We need sound solutions that respect taxpayers."

In conclusion, Rep. Alexander's criticism of the income tax hike in Michigan highlights concerns about its impact on workers, families, and the state's overall prosperity. He argues against the increase, emphasizing the need for solutions that support taxpayers and promote economic growth.

To learn more, click on this link: https://gophouse.org/posts/rep-alexander-increased-income-tax-rate-will-impact-workers-families-and-states-prosperity