Jocelyn Benson by Nihilego is licensed under Creative Commons Attribution-Share Alike 4.0 International license
Democrat gubernatorial candidate Jocelyn Benson wants to “reexamine” the state’s tax code to make it more “equitable.” Her justification? Michigan’s income tax is apparently “really low.”
There’s just one problem: she could not actually say what the income tax rate is.
That is a rather important detail to know before proposing an overhaul of the state’s tax system. If Michigan’s income tax is supposedly “really low,” one would expect someone running to lead the state to know what taxpayers are actually paying.
Michigan currently imposes a flat income tax rate of 4.25%. The rate would be 4% if not for Attorney General Dana Nessel’s egregious misreading of Michigan’s 2015 revenue-trigger law, which was upheld by the left-wing Michigan Supreme Court.
Across the country, states have spent recent years moving toward lower, flatter, and simpler income taxes. Michigan’s regional competitors have been moving in that direction as well. Indiana has continued reducing its individual income tax rate, bringing it down to 2.95%, while Ohio has dramatically simplified and reduced its income tax over the past decade, bringing its rate down to 2.75%.
Opining that Michigan’s income tax is “very low” while other states are cutting taxes risks leaving Michigan behind, costing the state jobs, investment, and taxpayers.
Jocelyn Benson is absolutely right that Michigan needs to reexamine its tax code, but not in the way she wants. Michigan needs to ensure that its tax code remains competitive as bordering states make even more progress. With Michigan Republicans holding the line against further tax increases, having an ally in the governor’s office will be important to passing key reforms to make the state more competitive. Jocelyn Benson has shown she is not the person to do that.