(The Center Square) – Michigan Rep. Matt Maddox said he’s happy the state is projecting a loss of nearly $1 billion in revenue due to tariffs and economic uncertainty.
The Republican from Milford believes the downfall over the next two years will force Democrats to cut a budget plan that increases spending by $3.5 billion over the last budget.
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“I’m actually glad there will be less taxes collected by the state,” Maddock said in a statement after a recent Consensus Revenue Estimating Conference. “It forces the Democrats to do something they never do – cut budgets because we’re not going to let them increase taxes.”
The Democrat-majority Senate’s plan pushes $86 billion in spending, a more than 4% jump over last year and a nearly $30 billion increase from 2019 when Gov. Gretchen Whitmer first took office.
That comes following a revenue report that painted a gloomy picture based on on-again, off-again tariffs and economic concerns surrounding fiscal policies put in place by President Donald Trump.
Union auto workers and Michigan Republican lawmakers have said the tariffs will revive the state’s auto industry and boost Michigan-made automobiles.
Industry leaders, along with Democrats, however, have warned they will drive up prices and cost Michigan workers jobs.
Maddox says the proposed lack of revenue, combined with the proposed budget, can only lead to a tax increase.
“The state budget has grown by $28 billion since Whitmer entered office,” Maddock said. “We had a $9 billion surplus in 2023, and the Democrats blew through it like they were sending it to Ukraine. Now, the Democrat Senate wants to increase the budget by another $3.5 billion without a transparent plan on how to fund it. It’s very clear their agenda is another tax hike on Michigan’s working class.”