Tax Freedom Act

A bill to achieve Tax Freedom for the people of Michigan; to phase out the state personal income tax, property taxes on primary residences and farmland, corporate income tax, and other destructive taxes; to replace tax revenue with energy royalties, economic-growth dividends, Sovereign Wealth Fund earnings, and radical government efficiency; to impose constitutional spending discipline; to deliver citizen dividends once taxes are eliminated; and to make taxation largely obsolete through abundance rather than extraction.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Section 1. Short Title.

This act shall be known and may be cited as the “Michigan Tax Freedom and Abundance Act.”

Section 2. Legislative Findings.

The Legislature finds and declares all of the following:

(a) Permanent high taxation is required only when government is inefficient and the economy is constrained. Abundance generated by energy dominance, manufacturing and agricultural supremacy, radical spending discipline, and a permanent Sovereign Wealth Fund can render most state taxes unnecessary.

(b) The strategic goal of this act is the systematic reduction and ultimate elimination of the state personal income tax, property taxes on primary residences and farmland, the corporate income tax, and other economically destructive taxes, funded instead by resource royalties, growth, Fund earnings, and efficiency savings.

(c) Taxation is a constitutional power of government. This act does not declare existing lawful taxes illegal; it creates a deliberate, phased pathway to make them obsolete through superior revenue sources and smaller government.

(d) All phases shall maintain essential public-safety, infrastructure, and core education functions while continuously shrinking the relative size of government.

(e) Implementation shall comply with the Constitution of the United States and the Constitution of the State of Michigan.

Section 3. Core Strategy – Replace Taxes with Abundance.

State tax burdens shall be progressively replaced by revenue from:

(a) Energy-export royalties, severance taxes, and related Energy Dominance receipts;

(b) Economic expansion driven by manufacturing, agricultural, and Renaissance policies;

(c) Earnings of the Michigan Sovereign Wealth Fund for Generational Americans;

(d) Savings from zero-based budgeting, agency sunsets, privatization of non-core functions, and elimination of waste; and

(e) Lawful federal tariff-related economic activity and reshoring that expands the Michigan tax base (while recognizing that tariffs themselves are a federal instrument).

Section 4. Phase 1 – Foundation (Years 1–3).

(1) Full execution of Energy Dominance policies shall commence immediately, with a substantial statutory share of new royalties and severance revenue deposited into the Sovereign Wealth Fund and available for tax relief.

(2) The state personal income tax rate shall be frozen and then reduced as growth and energy revenue materialize. Targeted taxes on energy production and family farms shall be eliminated or sharply reduced.

(3) Zero-based budgeting and the first round of agency consolidations and program eliminations under the Government Downsizing framework shall generate immediate savings dedicated exclusively to tax reduction.

Section 5. Phase 2 – Acceleration (Years 4–8).

(1) As manufacturing, agricultural, and overall GDP growth exceed national averages, the state personal income tax shall be fully eliminated.

(2) Property taxes on primary residences and farmland shall be dramatically reduced or eliminated through a combination of increased valuations from economic growth, direct Fund support for essential local services, and statutory rate cuts. Commercial property taxes shall be substantially lowered.

(3) Sales tax on essential goods shall be phased down as alternative revenue allows.

(4) The corporate income tax shall be eliminated to attract capital and jobs.

(5) Death and inheritance taxes, to the extent they exist under state law, remain permanently repealed.

(6) Gas tax and vehicle-registration structures shall be reformed and reduced, with transition funding from energy revenues and efficiency savings; long-term transportation funding shall shift toward user fees and private participation where feasible.

Section 6. Phase 3 – Completion (Years 9–15).

(1) Remaining state taxes shall be replaced to the maximum extent practicable by energy royalties, Sovereign Wealth Fund distributions, growth-driven revenue, and residual user fees.

(2) Once the Fund and energy revenues are sufficient, annual citizen dividends shall be paid to eligible Michigan residents, with priority for generational households, turning surplus abundance into direct family prosperity.

(3) The Legislature shall submit to the voters a constitutional amendment that:

(a) Locks in the tax-elimination achievements;

(b) Requires a supermajority vote to reimpose any eliminated tax; and

(c) Imposes a permanent spending cap tied to population growth plus inflation.

Section 7. Supporting Mechanisms.

(1) Nuisance fees, penalties, and overcharges that function as hidden taxes on productive activity shall be systematically reviewed, simplified, or repealed.

(2) All savings from the Department of Government Efficiency-style reviews, agency sunsets, and privatization shall be dedicated to tax relief or Fund capitalization, never to new spending programs.

(3) Buy Michigan / Buy American preferences and support for federal tariffs that protect Michigan producers shall be pursued to expand domestic economic activity.

(4) An annual Tax Freedom Dashboard shall publicly track energy and royalty revenue, GDP growth, government spending as a percentage of GDP, progress toward zero major state taxes, and dividend distributions.

Section 8. Safeguards.

(1) Essential services—public safety, core infrastructure maintenance, and basic education funding delivered through parental choice—shall be protected throughout the transition.

(2) No phase may proceed if it would impair the State’s ability to meet constitutional obligations or existing bonded indebtedness without alternative provision.

(3) The Sovereign Wealth Fund principal remains inviolable; only earnings may be used for dividends or tax-replacement support.

Section 9. Severability.

If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act and the application of its provisions to other persons or circumstances shall not be affected.

Section 10. Effective Date.

This act takes effect 90 days after enactment. Phase 1 rate freezes, energy-revenue dedications, and efficiency mandates apply to the next full fiscal year.

Enacting Section.

This act is ordered to take immediate effect.

No More Taxes. All Abundance.

Energy Dominance. Growth. Efficiency. Sovereign Wealth.

From Tax Burden to True Liberty.

Michigan Leads the Way. Michigan First.