LANSING, Mich. (WZMQ) – Michigan House Speaker Matt Hall says Republicans will pursue $800 million in spending cuts and reject all proposed tax increases as lawmakers negotiate the upcoming state budget.
Speaking to reporters at the Capitol, Hall said the current $81.5 billion budget will need to shrink again as part of a multi-year fiscal framework.
“We’re going to cut $800 million of waste, fraud, and abuse, and we aren’t going to do any of these tax increases,” Hall said.
Hall characterized the reductions as roughly 1% of the overall budget. He said projected shortfalls stem from prior agreements that redirected revenue toward road funding and tax relief, including eliminating taxes on tips, overtime, and some retirement income.
Governor Gretchen Whitmer has proposed revenue adjustments to help close projected gaps, including changes affecting internet gaming and tobacco products. Hall said those proposals are nonstarters for House Republicans.
“We’re not doing internet gaming. We’re not doing a digital advertising tax. We’re not going to raise taxes on garbage, and we’re not going to raise hunting and fishing fees,” he said.
Beyond immediate budget negotiations, Hall unveiled a broad property tax reform agenda.
“I think the state can eliminate that six mill state education tax. I estimate that’ll save the average homeowner about $900 a year,” Hall said.
Hall said schools and local governments would be made whole through alternative revenue sources but declined to provide specifics, saying he would share details later.
The speaker also called for eliminating the personal property tax for small businesses and utilities, arguing it discourages investment, and ending the state’s real estate transfer tax to reduce closing costs for homebuyers.
Additionally, Hall proposed eliminating what is commonly known as the “pop-up tax,” which allows property taxes to reset to market value when a home is sold. He argued that removing the provision would encourage seniors to downsize and increase overall housing supply.
On public safety and immigration enforcement, Hall criticized the potential firing of two Detroit police officers who contacted federal immigration authorities during an arrest.
“We don’t want criminal illegal aliens in Michigan,” Hall said, adding that firing the officers would be “completely unacceptable.”
Democratic leaders had not immediately responded to Hall’s latest proposals. Budget negotiations are expected to continue in the coming months.
