Michigan’s fiscal and economic leaders met for the annual January Consensus Revenue Estimating Conference on Jan. 12, projecting higher-than-expected state revenues that will result in a $1.3 billion budget surplus this year.

Republicans in the House were very quick to call for an income tax cut to help offer some relief to people who are still struggling to afford the higher cost of living. You might recall that the state income tax rate increased from 4.05% to 4.25% on Jan. 1 after the governor and the attorney general took action to end the reduction that occurred in 2023.

Unfortunately, just a couple of days after news of the budget surplus broke at the Consensus Revenue Estimating Conference, Gov. Whitmer told reporters she would not consider lowering taxes.

In 2023, the state started the year with a $9 billion surplus. The governor and Democrats in control of the Legislature blew through it all, spending it on corporate handouts and other special projects to help their political allies. Meanwhile, families continue to pinch pennies to put groceries in the fridge and pay their monthly bills. If the state has a budget surplus, we should give it back to the taxpayers to whom it rightfully belongs.

In addition to putting more money in everyone’s paychecks, lowering the income tax would greatly benefit our economy, which seems to be lagging behind other states.

According to data compiled by the Mackinac Center for Public Policy, jobs in states that tax income at less than 4% are up 5.7% above their pre-pandemic levels. In states that tax income at 4% or higher, job numbers have only increased by about 2% since the pandemic. Michigan is even further behind, with the state still 0.6% below its pre-pandemic job numbers, according to the latest payroll jobs data from the Bureau of Labor Statistics.

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The first two weeks of a 54-54 split in the Michigan House of Representatives have been a bit of a learning curve for House Democrats who are used to being in control.

On Wednesday, Democrats rushed a vote on an amended bill without giving my Republican colleagues and me much notice about the changes. It ended up failing 52-52.

I hope this will serve as a lesson that working together in an open and transparent manner is the only way we will get anything done in the current environment. The Democrats’ days of operating in secret and ramming through partisan policies are over. It’s time for the Democrats to come to the table and discuss how to share power and what policies we can pursue together to make life better for people throughout our state.

On a positive note, the 54-54 split helps stop the Democrats from passing any radical bills.

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If you have any questions or concerns, please do not hesitate to reach out to my office by calling (517) 373-3906 or emailing RobertBezotte@house.mi.gov. I am always happy to hear from people in our community.

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