Governor hopefuls pitch economic plans, from tax cuts to arts and culture

Michigan governor hopefuls outline economic plans in form near the Mackinac Policy Conference
Republicans tout plans to cut taxes, offer few details on spending cuts that would be required to balance state budget
Democrat Jocelyn Benson proposes a new state department to oversee arts, culture, tourism and sports

MACKINAC ISLAND — Here in a packed pub not far from the annual Mackinac Policy Conference, leading gubernatorial candidates told business and political leaders how they intend to make Michigan more competitive.

Republicans centered their pitches on various and sweeping tax cuts, while Democrats Jocelyn Benson and Chris Swanson shared plans to restructure Michigan’s economy.

Benson proposed a novel approach: She’d like to create a new state department overseeing arts, culture, tourism and sports “to leverage all of the economic benefits that can happen when we’re really strategically inviting people to Michigan,” she said.

Benson envisioned the department as a way to attract “musicians, filmmakers (and) sporting events that can generate additional economic revenue for our local communities, as well for our state.”

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Pointing to changes she oversaw at branch offices as secretary of state, Benson argued she could find efficiencies in government to cut costs and free up revenue without requiring tax hikes or reductions in services.

Rather than create new government departments, Republicans shared plans to cut taxes, which would benefit residents and businesses but force the state government to scale back spending.

Businessman Perry Johnson has staked his campaign on a proposal to fully eliminate Michigan’s 4.25% income tax. He hasn’t detailed potential spending cuts but touts plans to lead a “mega audit” of state government.

“In six months, I will be able to find at least” $13.5 billion “that we can eliminate to pass this income tax,” he said Wednesday.

Johnson has run extensive television ads saying his tax cut plan would save the average Michigan family $4,747 a year, which Bridge Michigan has found overstates potential savings by about $1,300.

All GOP candidates in the race have proposed cutting income taxes or property taxes, which generate money for schools and local governments. None have identified concrete plans to cut spending by a corresponding amount.

“We need to get rid of the waste, fraud and abuse, that’s where the starting point is,” said Senate Minority Leader Aric Nesbitt, R-Porter Township.

US Rep. John James proposed a more incremental approach.

He argued there are several billion dollars in unspent government funds that could be tapped, and suggested he’d root out fraud in Michigan’s unemployment system to fund a partial income tax cut.

“If we look under the hood and find it, that could constitute up to a quarter of a reduction in your income tax rate,” James said.

It is “not realistic to say we go all in at one time,” James told onlookers, but even a partial cut “would make us stronger and better than we are right now.”

Swanson, a Democrat and Genesee County sheriff, said he would repeal the state’s new 24% wholesale marijuana tax, which is the centerpiece of a historic bipartisan road funding deal lawmakers forged last year.

“If it’s happened in the cannabis industry, what industry is next?” Swanson asked, arguing the tax will hurt small businesses already struggling.

The candidate forum was the closest thing to a gubernatorial debate at this year’s Mackinac Policy Conference, an annual gathering of political and business leaders organized by the Detroit Regional Chamber.

The chamber had endorsed independent Mike Duggan for governor, which had deterred other candidates from agreeing to what had been a traditional island debate.

After Duggan left the race last week, the Michigan Debate Task Force proposed a smaller debate between Benson and James – who have led polls in their respective primaries — but Benson declined.