As the race for Michigan governor intensifies, affordability has emerged as one of the defining issues for voters.
According to the United for ALICE report, a family of four in Michigan now needs more than $114,000 a year to cover basic household expenses, excluding luxuries.
All five major candidates for governor agree that Michigan has become too expensive for many families.
However, the three Republican and two Democratic candidates are offering sharply different approaches to lowering costs.
Former Michigan Attorney General Mike Cox: Eliminate the income tax through spending cuts
Republican candidate and former Michigan Attorney General Mike Cox says eliminating Michigan’s 4.25% state income tax is the most effective way to put more money back into residents’ pockets.
“The most prosperous states in the country are Tennessee, Texas, Florida, but also New Hampshire, Wyoming, Washington, where you came from; they’ve all eliminated the income tax.
They all do better. Their kids are doing better on scores. They’re attracting more young people, and they’re increasing household incomes each and every year while we’re 50th out of 50,” Cox said.
For a typical working Michigan household, eliminating the state income tax could save roughly $3,000 annually.
Cox said he would pay for the tax cuts by eliminating corporate subsidies and reducing government spending.
“The more government spends, the more likely you’re going to get corruption, the more like you’re going to get just bad, stupid results. When I was in state government, I reduced the size of my office by 20%. When I was in business, I had to adjust what I did each and every week, just like folks do in their households,” Cox said.
Businessman Perry Johnson: Audit government before eliminating the income tax
Republican businessman Perry Johnson has centered his campaign on eliminating the state income tax.
“This is actually the entire theme on which I’ve been running,” said Johnson. “And I want to make it very clear that that is the real reason I am running.”
Michigan’s individual income tax is the state’s largest source of tax revenue, providing about 40% of discretionary funding for the general fund and School Aid Fund.
When asked how he would eliminate the tax without reducing funding for roads, schools, and public safety, Johnson pointed to what he calls a statewide efficiency audit.
“I suggested the mega audit, the Michigan Efficiency Government audit. I know Gretchen doesn’t want to audit anything. I say we audit everything. Because why? When you go and do that, you find out where you can save. You find out if there is any fraud going on; you know where to save that,” Johnson said.
Rep. John James: Phase out the income tax over time
Republican U.S. Rep. John James also supports reducing the state income tax but says it should be phased in rather than implemented immediately.
“We’re going to lower taxes. But we’re not going to deal with so-called magic numbers,” said Rep. James. “We’re going to do with things that are based in reality. And we’re going go with up to three to $3.5 billion tax cut in year one and continue to work through that.”
James said stronger economic growth, fewer regulations, and eliminating government waste would eventually reduce the state’s reliance on income tax revenue.
“This is part of the reason why my plan is superior, frankly, to some of the political gimmicks that other people are saying out there. These are based upon the facts. These were based on the Auditor General reports. This is based upon the House Oversight Committee, which does not cut vital road funding, doesn’t cut vital Medicaid funding, and doesn’t cut vital government funding to the core. It cuts waste, it cuts fraud, it cuts abuse, and we’re just starting,” James said.
Chris Swanson: Lower monthly household bills
Democratic candidate and Genesee County Sheriff Chris Swanson said reducing the cost of everyday necessities should be the state’s priority.
His first proposal is a six-month moratorium on utility rate increases.
“Which includes DTE and consumers,” said Sheriff Swanson. “A six-month moratorium on any rate hikes. You see it all the time, 9% here, 9% there, but I flip on the lights at my house, and nothing’s changed, but I’m paying 15, 20% more than I did three years ago?”
Swanson said his broader goal is to save families hundreds of dollars each month through a combination of lower state costs and targeted tax relief.
“If I can save people two to three or $400 a month on some state cost, or maybe just reduce some spending in this area, so it gives some services, whether it’s childcare, state income tax, excuse me, state gas tax. These are the things that it’s just gonna be a little bit of a help,” Swanson said.
Jocelyn Benson: Focus on reducing essential costs
Democratic Secretary of State Jocelyn Benson says Michigan should focus on lowering the cost of essential expenses, including health care, prescription drugs, auto insurance, and housing.
“So, I do think we need a soup-to-nuts review of everything we need to do to bring in revenue,” said Benson. “We need to ensure that revenue’s being spent effectively to grow our economy and reduce costs, knowing that performing health insurance, auto insurance, and a number of other types of costs that are hurting Michigan families are addressed and reduced.”
Benson said she does not plan to raise taxes on the middle class, instead advocating broader reforms to make everyday necessities more affordable.
“We need to have hope that government can be reformed in a way that will reduce those costs. So, I want Michiganders to know, to come to us with their ideas as well and to share their stories so that we can take those with me to Lansing and push our lawmakers as well,” Benson said.
The bottom line
Affordability is likely to remain one of the central issues in Michigan’s 2026 gubernatorial race.
While all five major candidates agree that Michigan families are facing rising costs, Republicans largely emphasize tax cuts and government spending reductions, while Democrats focus on lowering the cost of everyday necessities through targeted reforms and consumer protections.
Voters will ultimately decide which approach they believe will provide the greatest financial relief.