News Story

Whitmer has supported $16.2 billion in subsidies since 2001

Amount enough to run government without income tax for a year

Gov. Gretchen Whitmer has supported more than $16 billion in corporate welfare, a survey of her voting and governing record shows. At the same time, Whitmer has heavily criticized Republicans for their own handouts to select companies.

Whitmer voted for $4.5 billion in selective business subsidies during her time as a legislator. As governor, she supported another $6.6 billion in taxpayer money to hand-picked businesses. She is also proposing, thus far this year, an additional $5.1 billion in corporate welfare.

In all, Whitmer has supported $16.2 billion in business subsidies since her first election in 2001 to the Michigan House of Representatives.

That is more than the entire amount raised annually by Michigan’s income tax, which brings in just $12.3 billion per year, noted James Hohman, fiscal policy director at the Mackinac Center for Public Policy.

Whitmer attacked subsidies to select corporations when she ran for governor in 2018, as Michigan Capitol Confidential reported. Gubernatorial candidate Whitmer released a campaign commercial telling voters she fought against “corporate tax giveaways” in Gov. Rick Snyder’s administration. 

“I’m tired of seeing corporations getting more tax breaks, while you get hit with a retirement tax,” Whitmer said in the commercial.

Whitmer also attacked Bill Schuette, her Republican opponent, for giving public money to private companies. “For years, Bill Schuette’s handed tax giveaways to the super-rich, putting Michigan taxes out of whack,” she said in a 2018 campaign ad.

In fact, Schuette’s corporate welfare track record was more modest than Whitmer’s. Schuette supported $888.8 million in handouts during his time in office. While serving in both the Michigan House and Senate, Whitmer voted for four times that amount.

As governor, Whitmer burned through a $9 billion budget surplus while vetoing a temporary cut in the gasoline tax and a cut in income taxes. Michigan Votes described one bill the governor vetoed:

To cut the state income tax rate for individuals from 4.25% to 4.0%; authorize a $500 nonrefundable child tax credit; increase the amount the state adds on to a refundable federal earned income tax credit for low income households that owe no taxes, from 6% to 20% of the federal amount; increase the income tax exemption for individuals age 67 and above from $20,000 to $21,800; authorize tax credits for disabled veterans, and more. The Senate Fiscal Agency estimates the bill would save taxpayers around $2.5 billion annually.

Whitmer did not respond to an email seeking comment.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.