Economic Pitches Collide at Mackinac Policy Conference

Michigan governor candidates offered sharply different visions for the state's economy during a candidate forum near the annual Mackinac Policy Conference on Mackinac Island Wednesday. The proposals range from eliminating the state income tax to creating an entirely new state department focused on arts, culture, and tourism.

For Grand Rapids businesses and residents, the stakes are clear. The next governor will decide whether Michigan pursues deep tax cuts that require spending reductions, or whether it expands state government to target new economic sectors.

Benson Proposes New State Department for Arts and Tourism

Democratic candidate Jocelyn Benson pitched a novel approach to economic development. She wants to create a state department overseeing arts, culture, tourism, and sports.

"We need to leverage all of the economic benefits that can happen when we're really strategically inviting people to Michigan," Benson said.

Benson, who currently serves as Michigan secretary of state, pointed to efficiency improvements she oversaw at branch offices as evidence she could cut government costs without reducing services or raising taxes.

She envisioned the department attracting musicians, filmmakers, and sporting events to generate revenue for local communities across the state, including West Michigan's growing tourism corridor.

Republicans Push Tax Cuts Without Spending Plans

Republican candidates centered their pitches on tax reductions. None of the GOP candidates identified concrete spending cuts to offset the revenue loss from their proposals.

Businessman Perry Johnson proposed eliminating Michigan's 4.25% income tax entirely. He claims he could find at least $13.5 billion in government savings within six months to fund the cut.

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

Johnson has run television advertisements claiming his plan would save the average Michigan family $4,747 per year. Bridge Michigan found that figure overstates potential savings by approximately $1,300.

Senate Minority Leader Aric Nesbitt, R-Porter Township, argued that eliminating "waste, fraud and abuse" in state government should be the starting point for funding tax relief.

James Calls for Partial Tax Cut Funded by Fraud Recovery

U.S. Rep. John James, R-Michigan, proposed a more incremental approach. He argued that unspent government funds and recovered fraud from Michigan's unemployment system could finance a partial income tax reduction.

"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.

James said a full elimination of the income tax is "not realistic to say we go all in at one time." He argued even a partial cut would strengthen Michigan's competitiveness.

Swanson Targets Marijuana Tax as Economic Burden

Democrat Chris Swanson, Genesee County sheriff, proposed repealing the state's 24% wholesale marijuana tax. The tax is a centerpiece of a bipartisan road funding deal lawmakers passed last year.

"If it's happened in the cannabis industry, what industry is next?" Swanson asked.

Swanson argued the tax hurts small businesses already struggling with economic pressures.

Debate Plans Stalled After Duggan Exit

The forum was the closest thing to a gubernatorial debate at this year's Mackinac Policy Conference. The Detroit Regional Chamber had endorsed independent candidate Mike Duggan for governor, which deterred other candidates from agreeing to a traditional island debate.

After Duggan dropped out of the race last week, the Michigan Debate Task Force proposed a smaller debate between Benson and James. Benson declined to participate.

What It Means for Grand Rapids

Grand Rapids sits at the center of Michigan's West Michigan economy. The city and surrounding Kent County are home to major employers in healthcare, legal services, manufacturing, and tourism.

  • Tax cuts proposed by Republican candidates would reduce state revenue. Local governments rely on state aid for schools, infrastructure, and public safety.
  • Benson's proposed arts and culture department could bring new state funding and coordination to Grand Rapids' existing cultural sector, which includes the Grand Rapids Art Museum, Frederik Meijer Gardens, and the annual ArtPrize competition.
  • Swanson's marijuana tax repeal would affect cannabis businesses operating in Grand Rapids and across Kent County. The tax generates revenue that funds state road projects.

The gubernatorial primary elections are coming. Voters in Grand Rapids and Kent County will have to decide which economic vision aligns with their interests.