Whitmer Wants to Increase Taxes on Tobacco, Vapes, Betting, and Online Ads

Simply put, Michigan is short on cash, and Gov. Gretchen Whitmer says it’s because the federal government changed the rules.

Her answer: raise taxes.

According to MLive, new federal changes reshuffled how Medicaid is funded, leaving Michigan about $1 billion short. Since Medicaid covers more than 2.5 million people across the state, Whitmer says that missing money has to come from somewhere.

And unfortunately, she wants it to come from all of us.

What Whitmer Wants to Tax in Michigan

The plan would be to increase taxes on cigarettes and other tobacco products, add a new tax on vapes, raise taxes on sports betting, and hit online casinos with new fees. There’s also a new tax on online and digital advertising, which would apply across the board.

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Altogether, the state says those taxes would pull in around $800 million, mostly to help cover Medicaid.

How Republicans Feel About Whitmer’s Tax Plan

Republicans aren’t feeling this at all. House Speaker Matt Hall says there should be no tax increases, period. Instead, he says the state should cut spending first. And yeah, we agree.

Then there’s the rainy day fund. Whitmer wants to pull $400 million from it to help balance the budget. Republicans say that’s a bad idea, and savings should stay put. Whitmer’s office says the fund would still be near record levels afterward.

So, that’s the big standoff.

Whitmer says Michigan is dealing with a federal mess. Republicans say taxpayers shouldn’t be the ones paying for it.