Stop the Gas Tax Increase
Lawmakers and the governor are proposing a $1.4 billion increase in transportation spending that they intend to fund with an equally large tax hike on gasoline and an increase in vehicle registration fees. Under current law the Transportation budget is over $3.3 billion—this tax hike would nearly double the budget.
Most people would agree that Michigan’s roads are in need of repair, but lawmakers should prioritize spending and stop skimming transportation revenue for other pet programs BEFORE they raise taxes on Michigan drivers.
Consider the facts:
- Michigan currently has the 6th highest gasoline tax in the country, at 60.5 cents per gallon.
- The Governor’s proposed wholesale tax on gasoline would increase taxes by 9.3 cents per gallon, giving Michigan the highest tax on gasoline in the country at 69.8 cents per gallon.
- Michigan imposes a 6% sales tax on gasoline sales, one of just eight states to do so, yet that revenue does not go to road building, repair, and maintenance.
There are many solutions to Michigan’s road woes that don’t involve raising taxes on cash-strapped Michigan families and businesses. Although proponents of the tax hike claim it will help create jobs, in fact it could kill the small economic gains Michigan has only recently achieved.