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Thursday, November 7, 2024

Wakeman does not support tax increases to cope with budget shortfall

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Rep. Rodney Wakeman | Michigan House Republicans

Rep. Rodney Wakeman | Michigan House Republicans

Rep. Rodney Wakeman (R-Saginaw Township) released a statement on the Michigan House Republicans website stating that an increase in taxes won't help the state's budget dilemma.

The COVID-19 pandemic has had a bigger impact on Michigan than expected, Wakeman said. To improve health care capacity and other health-related reasons, the Legislature approved $150 million in spending, when it should have been considering the budget shortfall. 

"The governor said at a recent press conference it’s the responsibility of the Legislature to craft and approve these expenditures and the state budget as a whole," Wakeman said, according to Michigan House Republicans. "I hope she understands it’s also the responsibility of the governor to work with the Legislature to remedy the issues brought on by a massive budget shortfall. The House and Senate recently held a revenue-estimating conference that predicted a deficit totaling nearly $3 billion in the current fiscal year."

Wakeman said he and other Republicans will be making sure the state addresses the budget shortfall, but he doesn't want that to be done through raising taxes. If an increase in taxes is proposed, Wakeman said he wouldn't be supporting the legislation. 

But tax increase proposals are expected to be brought forward. Among the expected tax increase proposals is an income tax, which Wakeman believes would punish small business owners already struggling to get by, and an increase in sales tax. 

"A similar proposal to fix our roads and fund local governments was rejected in 2015 by a historic margin," Wakeman told Michigan House Republicans. "If there’s no clear direction for funding, it’s irresponsible to ask citizens to pay more sales tax. The governor’s administration has not shown the transparency required to earn the trust of taxpayers, and after refusing to work with duly elected representatives, the Legislature is very unlikely to even consider a sales tax. Don’t forget, earlier this year the governor unilaterally placed billions of dollars on the state’s credit card well into the future for an inferior roads plan."

Wakeman stressed he wouldn't support any legislation to increase taxes, especially since the last time taxes were increased, they never returned to previous levels.

"I made a commitment when I ran for office to be a good steward of your tax dollars, and I am going to keep that promise," Wakeman said on the Michigan House Republicans website. "The Legislature will have some difficult choices to make in the next few months. The governor can make this much easier on everyone if she begins to take a sensible, consensus approach to safely reopening sectors of the economy."

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