Rinke touts ‘bold’ campaign plan to repeal state income tax | National policy

By DAVID EGGERT – Associated Press

LANSING, Mich. (AP) — Republican gubernatorial candidate Kevin Rinke said Monday his “bold” proposal to eliminate Michigan’s personal income tax would help residents and also set him apart in an area primary packed with 10 people, although he did not detail how he would tackle the budgetary ramifications.

Rinke, who kicked off a 10-day bus tour with a stop at the Fleetwood Diner in Lansing, said ending the 4.25% tax would position the state for growth alongside other states that don’t. have no income tax like Texas and Florida.

“We’re going to put that money in people’s pockets when inflation is killing them, when the cost of living is really going after those families,” said Rinke, a businessman who spends millions of his own money running , to The Associated Press. “They are going to spend it. There are taxes that are generated in different ways. So it’s not as if the budget had been cut by $11 billion. It’s the people and the way they choose to spend their money (that) re-energizes the budget.

Michigan’s personal income tax generated $11.7 billion in fiscal year 2020-21 and accounts for about 30% of all state tax revenue. It goes mainly to the general fund, but is also used to finance public schools and the construction of roads and bridges.

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“It will take bold leadership to transform Michigan,” Rinke said. “Repealing the state income tax is the first step toward creating an environment for the people of Michigan to succeed. It’s bold.

He did not specify how he would pay for the tax cut, except to say that state spending has increased dramatically under the administration of Democratic Governor Gretchen Whitmer, who is up for re-election and has called for targeted tax cuts for the elderly and the less well-off. income workers. He said if he won, he would repeal the tax by early 2024.

“We have plenty of time to work with the Legislative Assembly to figure out how we’re going to do that,” Rinke said.

Democrats have criticized his plan since he unveiled it less than a week ago. They note that this would cut billions from general and school aid funds as well as $600 million from transportation funding.

“He won’t answer basic questions because he knows his retrograde vision would leave Michigan communities less safe, public school students in the cold, and our infrastructure without the resources it needs to keep improving. “, said Rodericka Applewhaite, spokeswoman for the Democratic State. To party.

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