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Don’t put gas tax hikes on autopilot, warns Americans for Prosperity-Michigan

May 01, 2014

Group warns wholesale tax lacks transparency; takes power out of the hands of the people

LANSING, Mich.—Americans for Prosperity-Michigan today urged opposition to House Bill 5477, which would convert the existing cents-per-gallon gasoline excise tax to a percentage tax on the wholesale price of gasoline. In a letter to the House Transportation and Infrastructure Committee today, AFP-Michigan state director Scott Hagerstrom warned that the proposal would put gas tax hikes on autopilot.

“This proposal takes power away from the people and puts it in the hands of unelected bureaucrats,” said Hagerstrom. “Michigan citizens want to fix the state’s roads, but I don’t think they want to do that by setting in motion a series of automatic tax hikes.”

Hagerstrom noted that HB 5477 gives broad authority and discretion to the Michigan Department of Transportation. It establishes a floor for gas tax revenue, but fails to establish a ceiling, and it decreases transparency.

“Michigan currently has the fifth highest taxes on gasoline in the country,” said Hagerstrom. “This bill not only puts tax hikes on autopilot, it obfuscates those tax hikes by converting a simple cents-per-gallon tax to a more complicated wholesale formula.”

Hagerstrom noted that Americans for Prosperity-Michigan has been educating citizens on the issue and will continue to educate them on how a wholesale gas tax would affect them.

“It is important for citizens to know where their lawmakers stand on this issue,” said Hagerstrom. “We also want taxpayers to know the current tax burden on Michigan drivers.”

Americans for Prosperity-Michigan is a statewide organization of more than 90,000 activists committed to strengthening our constitutional government, establishing fiscal restraint, and giving taxpayers greater control over government. We are dedicated to recruiting, training, educating and motivating grassroots activists to be effective in their own communities. Americans for Prosperity does not support or oppose candidates for public office.

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