As Michiganders vote for president, many are guided by their concerns about the economy
Economic issues are a top concern for voters, with inflation and job security at or near the top of the list.
Bartenders and servers like what they're hearing from presidential candidates about dropping federal taxes on tips. But economists say there are more impactful ways to help the U.S. economy.
There are still several weeks for Michigan voters to decide who they want as their next president.
As usual, economic issues are a top concern for voters, with inflation and job security at or near the top of the list. Michiganders are talking about what kind of presidential leadership they would like to see when it comes to the U.S. economy.
On a September day, the midday crowd was starting to roll into the Nuthouse sports bar in downtown Lansing. Drew Alexe has been working as a server for the past three years. Alexe said he likes hearing presidential candidates saying they’d push to eliminate federal taxes on tips he earns waiting tables.
“Those nights you do make a lot of money on those credit tips, not having (to pay federal taxes) would definitely help us,” said Alexe. “I mean it’s a nice idea if you earn money through tips, but it’s just basically a political handout,” said Dale Matcheck. He’s the chair of the economics department at Northwood University in Midland.
Matcheck contends federal tax policy should not be about political handouts. Instead, he said tax policy should encourage things you want more of, investment, for example.
Matcheck said instead of cutting taxes on tips he’d rather hear presidential candidates talk about reducing the nation’s $35 trillion debt, which he admits would be unpopular.
“It’s going to consist of various tax increases and spending cuts,” said Matcheck. “And it’s going to require somebody who can work with the other side.”
Charlie Ballard is an economist at Michigan State University. He agrees the growing federal debt is not sustainable in the long-term and not good for the economy. Ballard would like to see increased taxes on the wealthiest Americans to help reduce the debt.
Ballard said he’d also like to see a carbon tax to help address the issue of climate change.
“A carbon tax that’s big enough to do anything about the problem is big enough to raise a whole lot of revenue,” said Ballard. “We could recycle those revenues, or at least some of them by reducing other taxes, especially on low- and middle-income Americans. Of course, the more we do that, the less we address the deficit.”
Despite concerns about inflation, the nation’s debt, and other economic challenges, there are still those starting and expanding businesses in Michigan.
Back in August, LuxWall CEO Scott Thomsen oversaw ceremonies marking the opening of the company’s glass manufacturing center in Hillsdale County.
Luxwall is just one of many new green energy companies in Michigan.
When it comes to presidential leadership to help manufacturers, Thomsen said what his industry needs is help training new workers.
“That’s where something really needs to be done on training and developing for these more automation and robotic type manufacturing positions,” said Thomsen. “It’s changed a lot in the last 20 years and the education hasn’t caught up or maintained.”
On the economy, former President Donald Trump says his focus will be on reducing inflation, cutting federal spending and increase oil and gas production. Vice President Kamala Harris says she’d expand tax credits for low-income workers, ban price gouging, and protect unions. Both say they support eliminating federal taxes on tipped wages.
You can learn more here about how all the presidential candidates on the Michigan ballot stand on this and other issues.
