Michigan elects a new governor this year.
The crowded field of candidates for the governor’s office includes former Michigan Attorney General Mike Cox.
The Republican contender says his background has shaped his run for the top job in Lansing.
Interview edited for length and clarity
Mike Cox: Just a generation ago, my parents came to Michigan because it was the greatest state in the greatest nation. They were immigrants, legal immigrants, and literally my dad used to tell us when we were growing up as kids that the streets were paved with gold when he got here. That’s how so many generations of Americans have viewed Michigan.
And right now, as football coaches tell us, the numbers tell the story. You are what your record says you are. And every single month we’re dwelling at the bottom in unemployment.
Just 12 years ago, we were middle of the pack in fourth grade reading, middling, and we’ve shrunk all the way back to the bottom.
The flip side of that is my granddaughters, kind of fortuitously, are growing up in Mississippi. In the past 12 years, they went from 49th to 9th. That’s why they call it the Mississippi Miracle. It’s been a miracle for my grandkids.
So why am I running for governor? We’ve been in decline too long. And I know I can build a team that’ll lead us back to victory, to make Michigan the state my parents remembered.
Quinn Klinefelter, WDET News: You mentioned several issues there. Which do you see as the most important to voters in Michigan?
MC: The most important are the three “E’s.” That’s education, employment/economy and emigration with an “e.” That means outbound migration, folks leaving us. And that’s really a function of education and the economy.
Over the past seven years we’ve had a state government that’s grown by 54%. $31 billion in new spending. And Quinn, that is killing affordability here in Michigan. You overlay that with Gov. Whitmer’s clean energy plan, which many, including me, call a scam. We now have the highest energy rates in the Midwest.
It makes it much less competitive to do business here in Michigan. So people are heading south. I’m not just talking about Florida, Tennessee, Texas. I’m talking about Indiana and Ohio. They’re the ones who are picking our pockets. And as governor, we can change that.
Spending less, improving education
QK: If you were elected governor, how would you address those issues specifically? Especially if you would still have to deal with a politically-divided legislature.
MC: Look, I was a prosecutor here in Detroit for 13 years before I was elected attorney general. Across the region, people want their kids to be able to read by the third grade, right? So, in terms of fixing education, states like Louisiana, Alabama, and Mississippi are now leading the country and doing it with much less money than we in Michigan spend. What do they do?
Number one, they require every kid to be able to read by third grade. Pretty simple. Number two, make sure every kid gets taught phonics the same way. Pretty simple. If a kid’s struggling, such as my granddaughter who is autistic, they get a tutor. Number four, provide coaching for teachers. And then number five, grade every public school, including charters. That allows parents, grandparents, and property taxpayers to see how their local school is doing.
Those five things have turned Mississippi around. And they’re doing it with 40% less spending per child, through every single demographic. We can do that. It’s doable right now.
Eliminating income tax
MC: In terms of eliminating income tax, it’s just simple. What are the most dynamic states in the nation right now? There’s Florida, Tennessee and Texas, like I mentioned, but also Wyoming, New Hampshire, cold weather states, South Dakota, Nevada. What do they all have in common? They all have different economies but they all have no income tax.
That helps small business owners, folks doing what I’ve been doing for the past 15 years since I disappeared from politics and built a business. It would cut the state corporate tax on 900,000 small businesses here in Michigan. And what then happens? The owner there can buy another stove or hire another server or consider opening another facility, right? It means the owner of a tool and die shop might send her employees for new training or buy a new machine.
Governors cannot pick winners and losers. Wall Street can’t even do that. But you can lower the burden on every small businessman and woman, make decisions quicker in terms of permitting and licensing. Doesn’t make anything less safe, but makes the process quicker.
You accelerate, you join the cadence, the velocity of what business needs to succeed. And this state will grow more prosperous.
What replaces income tax funds?
QK: If you eliminate the state income tax, that would erase a fair amount of revenue that comes into the state. How would you replace it?
MC: When I was elected attorney general in a close statewide race—I was the only Republican to ever beat Democrat Gary Peters—I didn’t know we were about to walk into the “lost decade.” For seven or eight years we were in a one state recession. And the rest of the country joined us during the Great Recession.
As you can imagine, our caseload jumped about 10%. At the same time, each and every year I was getting less money from the legislature. I had to reduce the size of my staff by 21%. No one ever does that in government. But I did it because it was required.
So what do you do at the state level? You do what Ford, GM, and Chrysler do. You turn to your vendors and you squeeze them for money. We upgrade technology. Without the goal, we’re never going to get there. And we will start to attract people again. Our revenues will actually grow as each and every year you see Tennessee growing, Texas growing. People are moving there. They’re staying there.
What does it mean? For a young couple trying to save up for that first home, a couple years without the income tax means they get the nest egg to plant roots right here in Michigan. For 900,000 small businesses, which are more than 99% of all the businesses in Michigan, it would be a tax cut. They would be able to hire more people, employ more people. The income tax is $13 billion every year. Michigan’s government, under the governor’s current proposal, will have grown $31 billion over seven years. That’s over twice what it would take to eliminate the income tax.
And I’ve taken on big fights and won. That includes utilities, when I saved ratepayers over $3 billion when I intervened. Whether it’s Blue Cross, when I helped stick up for individual payers and seniors, or whether it’s government in terms of affirmative action, I’m a guy who sticks up for the little guy and little woman.
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