Michigan

Rick Haglund: Lots of ideas to overhaul Michigan’s tax system, but little agreement on what to do ⋆ Michigan Advance

Published

2 years ago

February 18, 2024

Rick Haglund: Lots of ideas to overhaul Michigan’s tax system, but little agreement on what to do ⋆ Michigan Advance

I’m sorry, but this column is about tax policy.

Bor-ing, right? Maybe so, but how state lawmakers design a tax structure can have a significant impact on the finances of residents and businesses, and on the state’s economic competitiveness.

Lansing has been consumed by dealing with hateful social media posts by state Rep. Josh Schriver, R-Oxford, and an interminable fight over who is running the state Republican Party. But several proposals that could radically change tax policy in Michigan are floating around the Capitol.

Gov. Gretchen Whitmer’s Growing Michigan Together Council, an initiative aimed at boosting the state’s stagnant population, has triggered a debate over the role of taxes in attracting more people to Michigan.

Republicans complained the council’s report was a surreptitious plot to raise taxes to pay for favored Democratic programs that wouldn’t increase the state’s population.

Council members, including Republican Co-Chairman John Rakolta, denied that, saying the council’s six-month work schedule left no time for a discussion on taxes.

John Rakolta | Courtesy photo

Rakolta, speaking at the Detroit Regional Chamber Detroit Policy Conference last month, said there should be no talk about new taxes until the state develops a tax structure that’s “appropriate for the 21st century.”

But critics of the council’s report are “afraid to go down that path,” he said. Dismissing the council’s work is an “easy way to throw a red herring into the mix and distract everybody and the press that it’s all about taxes. It isn’t about taxes. It’s about: the state of Michigan is broken.”

Rakolta, chairman of industrial construction giant Walbridge, offered no specifics about what he thought a modern tax policy should look like. He said Michigan should implement “zero-based budgeting,” which would require the state to annually justify every program expense.

But some of his fellow business leaders are anxious for tax cuts. The West Michigan Policy Forum, a group of business executives that includes such heavy hitters as Amway Co-Chairman Doug DeVos and office furniture executive Matthew Haworth, is calling for the state to eliminate the personal income tax.

Backers of the idea claim states with no income taxes, including Texas and Florida, have among the fastest-growing populations. But states with no income tax make up lost revenue with other taxes.

The policy forum didn’t offer ideas for replacing Michigan’s $8 billion in annual income tax revenue, nearly two-thirds of state’s general fund tax revenue, but said there should be a “responsible transition” to its elimination.

Meanwhile, a group called AxMITax is seeking to place a proposal on the November ballot that would eliminate residential and business property taxes, the primary source of funding for local governments and a significant revenue pot for local schools.

The summary language of proposal was approved last month by the Michigan Board of State Canvassers, but the board has yet to approve the ballot form.

AxMITax said the measure would end the growing problem of property tax foreclosures. Any new local taxes would require 60% voter approval under the proposed ballot issue. Raising state taxes by more than .1% would require a two-thirds vote of the Legislature.

Karla Wagner of AxMITax said if eliminating property taxes results in libraries and museums closing, so be it.

Another group says Michigan’s tax system must change to support the investments needed for Michigan to thrive in an economy that requires higher levels of education in its workers and make the state more attractive to new residents.

Eliminating property and income taxes is an irresponsible, dangerous idea that, rather than make Michigan a more vibrant state, would likely bankrupt it.

The Michigan League for Public Policy has long called for a graduated income tax system in which those with higher incomes pay a larger percentage of their incomes in taxes than lower-income residents.

Thirty states and the federal government have graduated income taxes. Michigan has a flat income tax rate of 4.05% that will return to last year’s rate of 4.25% in the 2024 tax year because of a court order in a dispute over whether this year’s rate was a permanent or temporary cut.

The MLPP, citing a report by the Institute on Taxation and Economic Policy, said that the top 1% of Michigan earners pay an effective income tax rate of 5.7% while those with the lowest incomes pay an effective rate of 7.1%.

Michigan’s tax system is “upside down,” said Rachel Richards, MLPP’s fiscal policy director, in a Michigan Advance guest column.

While the state’s budget remains stable after billions of dollars in federal COVID-related programs have been exhausted, future state revenues will not be sufficient to “prevent us from returning to the decades of disinvestment in Michigan workers, families and children that we saw prior to the pandemic,” Richards said.

Implementing a graduated tax system would be extremely difficult. It would require voters to change the state constitution and would be vigorously opposed by business lobbying groups.

But eliminating property and income taxes is an irresponsible, dangerous idea that, rather than make Michigan a more vibrant state, would likely bankrupt it.

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Michigan

Man gets prison for fake signatures that roiled Michigan governor race

Published

10 hours ago

April 1, 2026

Press Room

Man gets prison for fake signatures that roiled Michigan governor race

A Florida man was sentenced to two to 20 years in prison Tuesday, March 31 for his role in a fraudulent petition scandal that derailed the candidacies of five Republican candidates for Michigan governor in 2022, according to online court records.

Macomb County Circuit Judge James Maceroni also ordered Willie Reed to pay nearly $334,000 in restitution to the campaigns that were victimized, records show. The judge ordered about $137,000 of that amount to go to Oakland County businessman Perry Johnson, who was disqualified from the primary ballot for governor in 2022 and is running again this year, and about $119,000 to former Detroit Police Chief James Craig, whose bid for Michigan governor ended when he was disqualified from the 2022 primary ballot.

“The actions of the defendants deliberately undermined our electoral process and denied voters their choices in our primary,” Attorney General Dana Nessel said in a news release. “I hope this outcome serves as a deterrent to others who attempt to subvert our system.”

In February, a jury convicted Reed, co-owner of Mack Douglas LLC and owner/operator of Petitions Reed LLC, of about a dozen fraud-related charges and conducting a criminal enterprise, while acquitting him of about 17 other charges. Convicted of 22 fraud-related charges, including conducting a criminal enterprise, was co-defendant Shawn Wilmoth of Warren, owner/operator of First Choice LLC and co-owner of Mack Douglas LLC. A third defendant, Jamie Wilmoth of Warren, was acquitted of all charges.

Prosecutors said the defendants charged campaigns more than $700,000 for valid signatures but knowingly delivered tens of thousands of forged signatures on nomination petitions to eight campaigns, including three judicial campaigns. The fraudulent signatures were later discovered by Michigan Bureau of Elections officials, after which the Board of State Canvassers ordered disqualifications. The candidates themselves were not accused of wrongdoing.

“He was treated fairly by the judge,” Reed’s attorney, Wright Blake of Detroit, told the Detroit Free Press after the March 31 sentencing.

However, Reed wants to appeal his convictions, Blake said, and the judge granted him an appeal bond to allow him to do so.

Shawn Wilmoth was sentenced to four to 20 years in prison on March 18 after a jury convicted him Feb. 9 of conducting a criminal enterprise and defrauding gubernatorial candidates Johnson, Donna Brandenburg, Mike Brown, and Michael Markey, as well as three judicial candidates. Shawn Wilmoth was acquitted on charges related to Craig’s petition signatures.

Maceroni ordered Wilmoth to pay $376,601 in restitution to the victims.

Contact Paul Egan: 517-372-8660 or pegan@freepress.com

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Michigan backup QB Colin Hurley no longer on roster

Published

22 hours ago

March 31, 2026

Press Room

Michigan backup QB Colin Hurley no longer on roster

Michigan backup quarterback Colin Hurley is no longer on the roster.

“Colin has departed the program,” Michigan football spokesman Dave Ablauf confirmed Tuesday.

Hurley, who has not yet played a game in college, transferred to the Wolverines from LSU. He participated in winter conditioning and spring practice, which is ongoing.

Head coach Kyle Whittingham had said Bryce Underwood, who started every game last season as a freshman, is the starting quarterback.

Whittingham also praised early enrolled freshman Tommy Carr when asked early in spring practice about who might be the backup.

Brayden Fowler-Nicolosi, a graduate transfer from Colorado State, is expected to arrive in Ann Arbor this summer. He has started 27 games.

achengelis@detroitnews.com

@chengelis

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Scouting the Pioneers: Three Denver Threats Michigan Must Neutralize in Las Vegas

Published

1 day ago

March 31, 2026

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Scouting the Pioneers: Three Denver Threats Michigan Must Neutralize in Las Vegas

Michigan must shut down Pohlkamp’s offensive blue line presence, Lorenz’s momentum-building play, and Hicks’ rookie goaltending to advance.

Video Transcript

Give me, yeah, give me like 30 seconds to a minute.

obviously their overall record, Michigan, let’s see here.

They’re running right now at 22 and 4, I think.

They’re 10 and 2 at home.

They’re on a six-game win streak.

and in conference right now they’re 13 and 3.

So they did play Michigan State twice already.

they split the series.

I think, the first game it was in Ann Arbor or whatever.

They won the, against, in the opposite place, right?

Yeah, yeah, yeah.

And they split the series, so- Each home, each home team won a game, right?

That’s it, right.

Yeah, exactly.

and so I was looking this up earlier ’cause I was looking up probably the most interesting stat ear- when I first, you know, the season started, Michigan was oh, way in ahead with the most goals overall for Division I hockey.

and I looked up again and I refreshed that and they’re still 26 games played, 125 goals scored, 56 goals scored against them.

That’s- I mean, that’s- Whoa.

That’s, that’s amazing.

That’s Yeah.

The next, the next best team is Quinnipiac, and they’ve played two more games and they have 115 goals and 62 goals scored against them.

So- Wow I think, I think you got the top five teams are all in the Big 10 right now.

You got Michigan, Michigan State, Western Wisconsin, and I think Penn State was up there, but I know they just lost two games to Michigan State, and then Gavin McKenna might be going to prison, so.

Yeah, I saw that.

That’s kinda crazy.

Yeah.

Anyways, but the thing about it is some of the players like Michigan has right now, Will Horkoff, he has Let’s see.

He has the most goals.

He has 20 goals right now.

TJ Hughes, he’s right behind him with 13.

Michael Hage, another great player.

You’re gonna, guys You guys are obviously are, is familiar, so those are probably three of the names you’re gonna hear.

Jayden Perron, one of the best defensemen.

His name’s Dakota, so you’ll probably hear him too.

but the way they play- Gotta sneak that in, huh?