Michigan Capitol Building - Lansing, by Robert Du Bois, Licensed under CC

Thanks to Republicans in the Michigan Legislature, the state passed a new budget for FY 2027 that included no new taxes and significant reductions in spending. Americans for Tax Reform commends the valiant effort to fight against new and increased taxes originally proposed by Governor Whitmer and Democrats in the Michigan Senate. 

The new budget cuts general fund spending by $859 million, eliminates $800 million in wasteful and fraudulent spending, and preserves Michigan’s rainy day fund provisions. This is the second year in a row that Michigan has reduced general fund spending, showing strong resolve from Michigan Republicans and a willingness to enact meaningful fiscal policy reform even with Whitmer in the governorship.  

The original budget proposal from Whitmer’s office included a slew of new taxes and tax hikes. Here is what Michigan avoided due to Republican intervention: 

  • Brand new 4.7% digital advertisement tax. 
  • 50% increase in the wholesale tax on cigarettes. 
  • New 57% wholesale tax on vapes and other nicotine products. 
  • 8% increase in online casino gambling taxes. 
  • Tiered, per-wager tax on sports betting platforms based on usage rates. 
  • 1,288.89% increase in solid waste fee over the next five years. 

The new budget also includes stronger oversight and more transparency regarding public assistance programs in the state, giving Michiganders more information about where their taxpayer dollars are being sent and what nongovernmental organizations are receiving funds. This is part of the larger $800 million eliminated from the budget that was deemed wasteful or fraudulent.  

State Representative Jason Woolford had this to say about the oversight measures:  

“As Chairman of the House Oversight Subcommittee, I’ve made it a priority to identify waste, fraud and abuse in our public assistance programs. These reforms are a significant win for the work of our oversight committee and demonstrate what can be accomplished when we focus on accountability and responsible stewardship of taxpayer dollars.” 

Fighting these egregious tax hikes and rooting out waste and fraud would not have been possible without the leadership of House Speaker Matt Hall, Majority Floor Leader Bryan Posthumus, and the fifty-six other Republicans in the Michigan House of Representatives who fought tooth and nail to deliver for all Michiganders. 

Americans for Tax Reform commends Republicans for their continued leadership in eliminating waste, fraud, and abuse in state government while remaining steadfast in their opposition to new and higher taxes.