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

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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.

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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.

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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. 

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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.

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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.

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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 Sets Record Recycling Rate in 2023, Recycles Nearly 70,000 Tons of Materials

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Michigan Sets Record Recycling Rate in 2023, Recycles Nearly 70,000 Tons of Materials


According to the Michigan Department of Environment, Great Lakes, and Energy (EGLE), residents of the state set a new recycling rate for 2023.

Michigan residents recycled almost 70,000 tons of materials in 2023, which sets a new record for the state. The number of materials increases the state’s recycling rate to 23%, up from 21%, recycling 82,000 tons more than the previous year.

“Recycling is not only the right thing to do but also the smart thing to do,” said EGLE Director Phil Roos.

“We know Michiganders want to recycle the right way, and through our ‘Know It Before You Throw It’ campaign and recycling infrastructure investments, we are providing them with the tools to do just that.”

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According to EGLE, Michigan is on pace to achieve its goal of a 30% recycling rate by 2029.

Read the full article here.





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Michigan's Newest Lakeside Inn Is Giving Gilmore Girls Traditional, But in the Midwest

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Michigan's Newest Lakeside Inn Is Giving Gilmore Girls Traditional, But in the Midwest


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From dreamy decor to top-notch amenities, Domino’s “Wish You Were Here” series is your first-class ticket to the most design-driven getaways around the world. Whether you’re looking to steal away for a few days or just steal a few ideas for back home (we encourage both, for the record), check out where we’re checking in.

I was born and raised in the Midwest (specifically outside of Chicago), which means I spent summers exploring Lake Michigan’s shores for family vacations. So when I pulled up to the newly renovated Wickwood Inn in Saugatuck, Michigan, why did I feel like I was suddenly starring as an extra in an episode of Gilmore Girls?

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Courtesy of Wickwood Inn

That magic is partly due to the charming town but also thanks to Martin Horner and Shea Soucie of Soucie Horner, their Chicago-based design firm, who bought the 1937 home two years ago and turned it into a modern inn befitting of Stars Hollow.

Vintage desk with four bird prints above

Courtesy of Wickwood Inn

Before the pair could make any cosmetic changes, they first had to consider the building’s history: Since the ’90s, the colonial structure was already a beloved inn run by adored cook Julee Rosso, author of The Silver Palate Cookbook. “When we bought the inn, we were very conscious of [Rosso’s popularity and returning guests], but we also had to make it our own,” Horner says. So instead of taking down walls and turning the 11-room property into a sleek Scandi hotel, they paid homage to the legendary former owner by working in details that were already there, like the art and furniture, which they reupholstered or repurposed. (The bathrooms however? Those were gutted and replaced with new tile and marble.) 

View into bathroom with blue vanity

Courtesy of Wickwood Inn
Wood paneled guest room with clawfoot tub in room

Courtesy of Wickwood Inn

The rest of the inn’s “jewelry,” as Horner calls it—like the bamboo bed frame in the room I stayed in—came from epic vintage shopping trips, Facebook Marketplace hauls, and even Horner and Soucie’s own homes. In fact, no two guest rooms are exactly the same other than the lighting, bedding, and Waterworks faucets. To further keep consistency, they went with a soothing, neutral Benjamin Moore paint palette. (Fan favorite White Dove was their go-to in most areas.) New Vispring mattresses appear in each guest room, too. 

Bamboo bed frame with white bedding and green pillow

Courtesy of Wickwood Inn

In the lobby and dining room, a fireplace and wood-paneled walls adorned with one of Rosso’s original tapestries, create cozy spaces in which to convene before a day spent exploring the area’s wineries and art galleries (prioritize Ox-Bow, trust me). Plus the backyard and screened-in gazebo are the perfect places to sip cocktails or indulge in the lobby’s complimentary chocolate chip cookies. 

Traditional-style room with lamp and chair

Courtesy of Wickwood Inn
Open shelving with bowls and fresh fruit and vegetables on counter

Courtesy of Wickwood Inn

The result almost feels delightfully non-Midwest, and certainly not beachy, even though the inn is just steps from the Kalamazoo River, where you can rent a candy-colored retro boat for an afternoon (highly recommend). Instead, the quiet luxury vibe paired with former Oprah Winfrey chef Rose Duong’s refined menu and the warm welcome from general manager Susan Michele make the whole experience decidedly Midwest. The only thing missing is Luke’s Diner.

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Ferndale man receives first beating-heart transplant in Michigan

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Ferndale man receives first beating-heart transplant in Michigan


Michigan’s first two beating-heart transplants took place at Henry Ford Health in Detroit recently.

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On his 58th birthday, Ken Miller of Ferndale was given the news that he would be undergoing the first-ever beating-heart transplant in the state.

Now, he is in the process of recovering. 

“I didn’t expect to be feeling this well,” Miller said. “I’m feeling great and blessed.”

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Miller had been in heart failure for more than a decade. He spent 25 days in a hospital bed, on a machine, prior to receiving his new heart –and a kidney– on May 31.

“I’m really excited about this outcome and excited about how well this heart worked,” said cardiac transplant surgeon at Henry Ford Health, Dr. Kyle Miletic.

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Ken Miller of Ferndale underwent Michigan’s first ever beating-heart transplant on May 31, 2024. (Provided by Henry Ford Health)

Heart transplantation has come a long way.

Generally, a donor heart is good for about four hours, which limits how far away a donor heart can come from. However, the “heart in a box” technology has been a breakthrough – which is a mini heart lung machine that keeps the heart beating.

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But still, the heart has to be stopped, twice, before being transplanted.

“We are always very concerned every time we have to stop the heart. Now, it’s inevitable. It’s going to have to be stopped once at the donor hospital to put it on this box, but the problem is we have to stop it a second time,” Miletic said.

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That can be problematic. But with the beating heart transplant technique, the donor heart does not have to be stopped a second time; it keeps beating.

“We hooked the donor heart up to his own blood stream. Once it came from the box, his blood was providing that blood and the nutrients to his new heart, and we sewed it in again as it was beating,” Miletic said.

Henry Ford surgeons performed a second beating-heart transplant just last week. That heart came from about 2,000 miles away.

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“Despite being the furthest distance we’ve ever traveled – really woke up right away with no issues, and that patient is doing extremely well and has excellent cardiac function,” the doctor said.

The new technique is not only revolutionary for heart transplant patients, but liver and lung patients as well.

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As for Miller, he’s ready to get back on his feet and back to his family.

“I look forward to just being able to move, walk, go upstairs,” he said. “All the things we take for granted.”



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