(WWJ) Michigan Gov. Gretchen Whitmer's $88 billion budget proposal is focused on several key areas, including protecting Medicaid, roads, schools, and literacy — and some new taxes.
Getting particular attention, and immediate pushback from Republicans, Whitmer is calling for tax hikes on tobacco products and sports gambling.
Whitmer said her proposed tax on cigarettes, vapes, and nicotine pouches would raise $232 million' part of a $900 million tax revenue plan that also includes a 25-cent-per-wager tax on sports betting.
But Michigan House Speaker Matt Hall says a tax hike on those items is off the table for Republicans.
"We're not gonna raise taxes on vape and alternative nicotine products and other tobacco products. We're not gonna do a delivery tax. We're not gonna raise taxes on internet gaming," Hall said. "We're not gonna do any of that. There will be no tax increases in this budget."
Whitmer is also asking for a $400 million withdrawal from the state's rainy day fund to help balance her budget, which Hall also opposes, and she's calling for an increase Michigan resident fishing licenses and hunting tags to raise money from outdoor programs.
So, what exactly do the Republicans want? Rather than raising taxes, Hall is calling for a property tax cut.
"Our plan people are gonna feel," Hall said. "Our homeowners across the state are gonna feel it, our renters are gonna feel it. It's gonna be significant property tax relief. People are gonna have more money in their pockets because of the property tax relief that I get done with the House Republicans.
Whitmer does have something in that vein in her plan, for older Michiganders. The governor has proposed a 10% property tax refund for senior homeowners, aged 65 and older.
That's part of her "Saving Michiganders Money" plan which also includes a “back to school” sales tax holiday, a continuation of the Working Families Tax Credit, and a rollback of the retirement tax. (Ger more details here).
“Michigan is open for business and on the move, and this budget will deliver on the kitchen-table issues that make a real difference in people’s lives,” said Whitmer, in a statement. “My balanced budget proposal will build on our strong record of bipartisan success. It doubles down on shared, long-term priorities to create good-paying jobs, fix roads, save Michiganders money, and ensure every child can read, eat, and succeed. Let’s work together to deliver another balanced, bipartisan budget on time and keep moving Michigan forward.”
Full details of Whitmer's budget proposal can be found online at this link.