The Michigan state capitol in Lansing at dusk by Carol M., licensed under CC.

Have you ever wanted to visit Michigan? Well, Michigan Democrats’ expanded tax hike on tourism will only make your trip more costly.

Earlier this week, Rep. Tyrone Carter introduced House Bill 6166, legislation which would increase the maximum amount the Travel and Convention Bureau can assess from 2% to 3%; then to 3.5% beginning January 1, 2025; and then to 4% beginning January 1, 2031. The Bureau already has the authority to charge a 2% fee on hotels with at least 35 guest rooms and Democrats think that is still not enough. Travel is already a costly endeavor, and Michigan Democrats proposal will only lead to even higher costs for consumers.

The money raised from increased fees on tourism will be funneled to government bureaus like “Visit Detroit” to increase advertisements for potential tourists. The irony is that they are trying to get more visitors to Detroit while simultaneously making it a less appealing destination by raising prices for travel. 

While the fee may seem minimal, it will have a substantial impact, increasing the assessment to 3.5% would cost Michigan taxpayers $13.5 million. For each 10th of a percent that the assessment increases, it costs taxpayers roughly $1 million. 

Not only will this tax hike affect people traveling to the greater Detroit area, but it will also harm hotels when potential guests are driven away from the higher prices. This tax hike is a lose-lose situation for all involved. If Michigan is looking to expand tourism in the state, taxes and fees which increase costs for the consumer are a poor policy choice.

This bill perfectly exemplifies the flaws in the current Democratic party of putting the proverbial cart in front of the horse when it comes to taxes. The Democrats constantly push for new or increased taxes without having a thoughtful plan for spending. Increased advertising will do little if you make tourism within the state more costly. 

If Democrats want to incentivize people to visit, they need to make Detroit and the rest of the state a more appealing place to visit. Lowering costs for tourism, not increasing them, is the most logical and efficient policy to expand tourism within the state. Hiking taxes and making consumers pay more is certainly not the best approach.