Nesbitt Supports Eliminating Income Tax

(Source: MIRS.news, Published 02/20/2026) Republican gubernatorial candidate Aric Nesbitt (R-Lawton) became the latest candidate to propose eliminating the state income tax as part of an economic agenda that also calls for making Michigan a Right-to-Work state and creating a special state office charged with weeding out "waste, fraud and abuse" across state government.

At a campaign stop in Paw Paw, Nesbitt argued Michigan is losing ground to faster-growing states and needs what he described as bold, structural change rather than incremental reforms.

"While other states thrive, Michigan keeps falling behind," Nesbitt said. "Now is not the time for minor tweaks — it is time for bold action. As governor, starting on day one, I'll fight to make sure that everyone can make it in Michigan."

The plan calls for fully eliminating Michigan's income tax, a move that would significantly reduce state revenue but, according to Nesbitt, spur economic growth and attract businesses. He also pledged to make Michigan a Right-to-Work state again, reversing a 2023 repeal of the policy.

Republican gubernatorial candidates Perry Johnson and Mike Cox also have called for the elimination of the state income tax. Tom Leonard has called for a reduction in the rate from 4.25 percent to 3.9 percent in his first year with a phased plan to remove it entirely.

The income tax generates $13 billion a year for the state. The state's General Fund in Fiscal Year (FY) 2026 is $13.6 billion.

Nesbitt's proposal would create a new Michigan Financial Accountability and Fiscal Oversight Office, or MI-FAFO, aimed at targeting waste, fraud and abuse across state government.

The agenda also includes expanded investment in skilled trades, including apprenticeship scholarships, and opting into President Donald Trump’s school choice scholarship program, alongside an effort to boost reading proficiency and position Michigan as a top-10 education state.