MICHIGAN’S 24% TAX SPARKS OUTRAGE AMID FRAUD PROBE AND FOREIGN AID CONTROVERSY

Hype Mag Official
Oct 3
2 min read

Updated: Oct 13

Michigan’s New Cannabis Tax Ignites Debate

Michigan's recent approval of a 24% wholesale tax on "Tree", set for January 2026 as part of the $81 billion state budget, has sparked widespread frustration among taxpayers and the cannabis industry, who see it as an unfair burden amid competing domestic and international spending priorities.

Economic Impact and Public Pushback

Expected to raise $420 million annually for road repairs, the tax pushes the total rate to around 40% with existing levies and faces lawsuits and protests, with critics citing job losses and business closures.

Michigan 24% Tree Tax

Foreign Aid and Fiscal Priorities

This discontent is heightened by Michigan's contribution to U.S. foreign aid, including roughly $95 million annually from state taxpayers toward a $38 billion package for Israel through 2028, with over $17.9 billion in military aid since October 2023.

Some argue these funds, part of over $260 billion in total U.S. aid to Israel since 1948, could address pressing domestic needs like healthcare, infrastructure, or military support for Americans, especially as state resolutions question the aid's alignment with human rights priorities. Senators like @mallorymcmorrow who backed the tax and has ties to pro-Israel groups like AIPAC, receiving significant campaign support, face scrutiny over whether such affiliations influence policy over local interests.

Fraud Allegations and Accountability Concerns

Adding to the tension, Republican audits claim $5 billion in state budget "fraud, waste, and abuse" under Governor @gretchenwhitmer including alleged misuse of grants and phantom jobs, with former President Trump echoing the concerns though "fact-checkers" deem some claims exaggerated.

A separate probe into a $20 million grant linked to a @gretchenwhitmer donor, involving luxury purchases, fuels calls for redirecting funds to American priorities like healthcare or infrastructure. The tax hike, amid these issues, prompts debate over balancing domestic needs against international commitments, with no clear resolution as public frustration grows.