<Home
Michigan House Republicans
Delivering Tax Relief and Fixing Our Roads – Without Raising Taxes
RELEASE|March 20, 2025

By State Rep. Pauline Wendzel

This week, the Michigan House is taking action to deliver real relief to Michigan families and fix our roads — all without raising taxes.

On Tuesday, we’ll be voting to roll back the state income tax rate. Michigan families are struggling with rising costs for groceries, gas, and housing. Meanwhile, the state has been collecting more money than it needs — and still raised taxes on hardworking families. That’s wrong.

In 2015, a law was passed to automatically reduce the income tax rate whenever state revenues outpaced inflation. That law was triggered in 2023, bringing the tax rate down to 4.05%. The cut was supposed to be permanent, but the Whitmer administration and Attorney General Dana Nessel ruled otherwise, forcing a tax hike on every Michigander.

Our plan will restore the lower rate and clarify the law to prevent future overreach. Michigan families deserve to keep more of their hard-earned money — and House Republicans are committed to making sure they do.

Then on Wednesday, we’ll be passing a comprehensive plan to finally fix our roads and bridges — without raising taxes. House Republicans have crafted a $3.145 billion annual plan that prioritizes local roads and ensures long-term funding stability. Here’s how we’ll do it:

  • $2.2 billion from the Corporate Income Tax — including $500 million from eliminating outdated MEGA credits and $600 million from higher-than-expected tax revenues.
  • $945 million from redirecting taxes paid at the pump directly to road funding — replacing the sales tax on gas with a revenue-neutral motor fuel tax.
  • $700 million to protect school funding by permanently dedicating sales tax revenue.
  • No new taxes. No new debt. Just a responsible, balanced plan that gets the job done.

This is a win for every Michigander tired of dodging potholes and being told there’s no money to fix the problem. We’re proving that we can cut taxes, invest in infrastructure, and protect critical services — all by making smart, responsible budget decisions.

House Republicans are focused on solutions that put Michigan families first. This week, we’ll deliver on that promise.

Michigan House Republicans

© 2009 - 2025 Michigan House Republicans. All Rights Reserved.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.