• The economy and affordability are top issues this election year
• Michigan gubernatorial candidates are laying out plans to cut taxes, housing costs and more. 
• All six major gubernatorial candidates from both major parties responded to Bridge’s questions

---

Michigan gubernatorial candidates are proposing major tax cuts, housing reforms and cost control mechanisms as they debate ways to boost the economy and rein in high prices. 

The economy and affordability are top concerns for 1 in 4 Bridge Michigan readers, according to our informal election-year survey of the state’s most pressing issues. 

Read on to learn how Michigan’s gubernatorial candidates would tackle some of the biggest economic questions facing Michiganders today. To read the candidate’s answers in full, click here.

Affordability

The question: What powers, in your view, are available to Michigan’s governor to increase affordability and what actions would you take to bring down costs for everyday Michiganders?

Affordability is a big issue — and likely to be a banner topic in a year of high gas prices and rising inflation. How to address it is a question that allowed candidates to touch on their other policy plans.

Related:

• Bridge Listens: How economic, affordability issues are hitting Michigan
• In their words: How Michigan governor candidates would build the state economy
• Bridge Listens: What Michigan’s next governor plans for data centers, clean energy

Benson, a Democrat, pointed to her experience running the Michigan Department of State as evidence she knows how to bring costs down and streamline government.

Among her proposals: A health care affordability board to “stop pharmaceutical companies from price gouging,” reforming the state’s energy rate setting process and “holding accountable investors who buy up properties and drive up rents solely to make a profit.”

Swanson, the other Democrat, said he would work to expand programs that have subsidized or funded free child care programs to bring down the cost of raising a family.

Republican candidates focused on cutting taxes and shrinking the size of state government as a way to return money to taxpayers. All mentioned reducing or eliminating Michigan’s 4.25% income tax as a way to cut costs.

Cox argued “we must attack the hidden tax of overregulation,” and said he would want to cut red tape on permitting. Cox tied his affordability agenda into education improvements, which he said would boost economic growth.

James tied his own affordability plans to promises to cut costs in energy, affordability and health care. He said he would order a “comprehensive audit of all expenditures” in state government. 

Likewise, Johnson has made a proposed “MEGA audit” a tentpole of his campaign, arguing it could help pay for elimination of the state’s personal income tax, which generated $13 billion last year for schools and government services. 

Nesbitt, also a Republican, said he would fight for “common-sense legal reforms” by making it more difficult to file “excessive lawsuits,” which he argued would lower insurance costs. He would also create a Michigan Financial Oversight and Fiscal Accountability Office to root out the “waste, fraud, and abuse running rampant in (Gov. Gretchen) Whitmer’s bloated bureaucracy.”

Repealing Michigan’s clean energy requirements was another target for Nesbitt, Cox and James. They assert removing the 2040 target for 100% carbon-free energy would bring down costs for ratepayers.

Economic development

The question: State government’s approach to attracting investment and growing its economy over the past decade has been changeful and often contentious. How would your administration foster economic growth, and do tools like the Michigan Economic Development Corp., Strategic Outreach and Attraction Reserve Fund and legislatively set tax credits fit in your plans? 

Every gubernatorial candidate — Democrat and Republican — told Bridge they want to make significant changes to the state’s economic development strategy. None of them were happy with Michigan’s current approach, but the level of change they called for differed.

The embattled Michigan Economic Development Corp., which has been subject to intense scrutiny over the past two years, would have to change, nearly every candidate argued.

Among Republicans, Cox was alone in calling for “fundamentally restructuring and ultimately eliminating” the MEDC. A handful of Republicans in the state Legislature have proposed a 53-bill package that would do just that, but it’s seen little movement.

“The public at-large views it as generally ineffectual and corrupt,” Cox said. “State government should not selectively subsidize a handful of large corporations while small businesses are left carrying an unequal tax and regulatory burden.”

Johnson called for “immediate reform” to the MEDC. James, likewise, said he would “reform MEDC with a bias toward retention and reclamation” — meaning a focus on retaining industries already here and bringing back those that have been lost. 

Republican candidates also contended cutting regulations and government oversight of the private sector would promote economic growth.

Nesbitt and James said they would fully cancel the Strategic Outreach and Attraction Reserve Fund, or SOAR, Whitmer’s flagship corporate incentive program that lawmakers have already stopped funding. 

And James said he would use executive reorganization powers to change the Department of Environment, Great Lakes and Energy back to the Gov. Rick Snyder-era Department of Environmental Quality, “to champion stewardship, not protectionism.”

Swanson, a Democrat, wants to “audit and restructure” the MEDC “to make it work for everyone,” while Benson, the other Democrat, said the MEDC and tax credits are tools that should only be used “with clear transparency and accountability.”

Benson in part argued for economic development through a different lens, asserting “more affordable housing, downtown revitalization, public spaces and safe neighborhoods” would “attract families and talent,” as would improving infrastructure statewide.

Taxes

The question: After years of pandemic-era surpluses, Michigan is facing a changing fiscal outlook, with federal policy changes putting pressure on the state government budgets. What, if anything, would you seek to change about Michigan’s system of taxation, and how would you pay for any tax cuts? 

Every Republican candidate in the race is calling for significant tax cuts but has not identified specific corresponding state spending cuts.

Johnson has centered his campaign around a promise to eliminate Michigan’s 4.25% income tax to save an average family $4,747 — though Bridge found the promised savings from the plan were overstated.

The income tax is the state’s largest revenue source. Eliminating it would cut about $13 billion used to craft annual state budgets. Johnson hasn’t proposed specific spending cuts but said he would identify them by conducting a “MEGA audit” of state government. 

“A comprehensive review of state government will identify waste, inefficiency, duplication, and corruption that have accumulated over decades,” Johnson said. “Every dollar we save through better management is a dollar that doesn’t have to come from Michigan families.”

Cox and Nesbitt, both Republicans, said they would also eliminate the income tax.

“It is the single most transformational economic policy our state can enact,” Cox said, noting he was the first candidate to propose the cut.

James took a more incremental approach, promising to cut 25% of the tax in his first year in office — that’d bring the state income tax rate down to 3.19% — “with a goal of eliminating the income tax entirely.

“I will also create targeted tax breaks for businesses that train workers in the skills Michigan actually needs right now,” James added.

Democratic candidates didn’t call for any major cuts, and Swanson suggested businesses should be paying more. 

Corporations, which are currently subject to a 6% state tax, “place a large burden on our public infrastructure, and we must ensure the profits they gain from these public goods are used to maintain and replace our failing infrastructure and ensure affordable access to public utilities,” he said. 

Benson avoided specifics in her response to Bridge. She said she’d work to identify “new sources of revenue while cutting wasteful spending.

“I’ll also work to create new revenue streams by encouraging growth in our tourism industry and other key economic drivers that will generate additional economic revenue and investment for our local communities and our state,” she said.

Housing

The question: Michigan has a longstanding housing affordability problem, from high rent prices to low supply. How would you work to increase the availability and attainability of housing for all Michiganders? 

Housing is one area in which there was universal agreement among all the candidates: Michigan needs to make it easier and faster to build new housing. They all blamed government, in some capacity, for standing in the way.

The Democratic candidates both called for zoning reforms to try to make it easier to build homes, Benson saying she would target “restrictive” zoning and Swanson “exclusionary” zoning.

Republicans pointed to issues like “red tape” and bureaucratic hurdles. 

Permitting was a bipartisan target. Democrat Benson and Republicans Cox and James all said permitting needed to happen more quickly.

“I have spoken to developers and business owners who chose Indiana or Ohio over Michigan simply because our process is too slow, unpredictable, and expensive,” Cox said, saying he supports “implementing permitting time clocks and making state agencies operate at the speed of business.”

James also called for changing land use policy to “build housing near jobs so Michigan families can live where they work.”

Regulations, Bridge has found, are only one factor affecting housing prices and Michigan’s rules are similar to neighboring states. 

Nesbitt, a Republican, claimed there was “free housing for illegal immigrants” in Michigan, which he said he would stop, though there is no evidence that is occurring. Nesbitt asserted illegal immigration is the source of Michigan’s housing shortage, saying “everyday Michiganders are paying the price as an artificial surge in demand drives up rent and locks families out of homeownership.”

Benson, who has rolled out a housing policy platform, is calling for policies that encourage new homeowners, including a promise to “expand and modernize the Michigan Homestead Property Tax Credit to reflect today’s housing costs and inflation.” That would include raising the income eligibility limit for the program “so more working families, seniors, and fixed-income homeowners” can qualify.

Of all the candidates, Democrat Swanson was the only gubernatorial hopeful who called in his response to Bridge questions for strengthening rights for renters, though Benson has included those provisions in her housing plan. Swanson also said he wants to improve housing stability for formerly incarcerated Michiganders. 

Diversification

The question: Michigan has long anchored its economic identity around the automobile, with one industry group estimating the mobility sector employs about 20% of all Michigan workers. But mobility employment continues to decline here as it grows in the US. What does Michigan need to do about its national place in mobility jobs, and how does diversifying the economy fit into that? Are there particular sectors or industries you would target for growth and why? 

Candidates offered some stark contrasts here on how or if the government should play a role in diversifying the state’s economy. 

Benson and James both stressed the importance of the auto industry but offered examples of industries they feel are ripe for growth in Michigan. 

Benson, a Democrat, pointed to improving infrastructure, lowering energy costs, environmental stewardship and internet access as tools for diversification, naming “life sciences, defense, semiconductors, clean energy and technology” as sectors she’d target

“We already have world-class universities, skilled workers, abundant natural resources and a strong manufacturing base. Our job is to connect those strengths to new opportunities,” Benson said. 

James, a Republican, said he sees “major opportunities” for the state in “life sciences, shipbuilding, logistics and defense manufacturing.” 

Whitmer, too, has tried to woo the defense aerospace industry to Michigan with multiple trips to security conferences. 

Republicans Cox and Johnson both argued state government should play no part in picking companies or industries to support. 

“I do not believe the government is smart enough to centrally plan the economy or consistently predict the next winning industry,” said Cox.

“Our job should be creating the conditions that allow innovation and investment to flourish wherever opportunity exists,” Johnson said, not “trying to predict which industries will succeed.”

Swanson, a Democrat, argued Michigan should spend more on workforce development to get more residents trained in the skilled trades. 

“Tax dollars allocated to job training programs pay dividends in eliminating delays and cost overruns for public works projects,” he said. “We need trades programs in our middle schools, high schools and post-secondary institutions.”

Nesbitt, a Republican, also spoke to career readiness, promising to “aggressively expand vocational and technical training by restoring strong skilled trades programs in our high schools.”

Population

The question: Michigan’s population has largely flatlined in the 21st century, dependent on domestic and international migration for growth, and a “silver tsunami” of retiring Michiganders is looming. How would you tackle Michigan’s aging crisis and what steps would you take to grow the state’s population? 

Whitmer had placed Michigan’s stagnating population as a policy priority of her second term, but lawmakers have not acted on many of the recommendations produced by her bipartisan population commission.

Among Democrats, Benson turned to her affordability agenda to explain how she would grow Michigan’s population. 

“As governor, my focus will be on driving down costs and growing our economy — making Michigan among the most affordable states in the country — so our loved ones choose to stay and young people across the country come here to work and build a thriving career,” she said. 

Swanson, on the other hand, said he thinks “boosting Michigan’s population to replace those leaving the workforce begins and ends with our education policy,” pointing to his plan to prioritize early education and literacy, expand career planning and strengthen educator retention and attraction.

Among Republicans, Cox also argued that education is a key to attracting families. He’s touted school improvements in Mississippi and proposed bringing back a third-grade reading retention law repealed by Democrats.

“Young families will stay in Michigan and move to Michigan if they know their children can receive a world-class education here,” Cox said. “Businesses will invest where they can find a skilled workforce.”

Cox also called for restoring Michigan’s “right-to-work” law, which had barred union dues or fees as a condition of employment. Democrats repealed the law in 2023. 

James promised to bring back “faith, family and hard work” to Michigan. He looked to Dylan Larkin as an example of Michigan’s troubles. The hockey player has requested to be traded from the beleaguered Detroit Red Wings to a more successful team.

“When I am governor we are cutting the income tax, lowering energy prices, bringing Dylan (Larkin) home to Waterford and hanging a USA Hockey gold medal on the Gordie Howe Bridge,” James said. 

Johnson again pointed to his income tax elimination plan as a panacea for Michigan’s population woes, calling it “tremendously simple.”

“The answer is straightforward: people move to opportunity,” Johnson said, and asserted removing the state income tax would immediately create that.

Republish This Story

Republish our articles for free, online or in print, under our Republication Guidelines. Questions? Email republishing@bridgemi.com