Michigan Legislators, Business Groups Debate Proposed Fuel Tax Hike
State senators in Michigan returned to Lansing Monday in a rare session to discuss raising fuel taxes to fund improvements to the state’s road infrastructure.
Detroit Free Press reports majority leader Randy Richardville of Monroe is proposing a new tax to replace the current fuel taxation scheme. At the moment, regular unleaded fuel is taxed at 19 cents per gallon, while diesel sees 15 cents per gallon go to Lansing’s coffers. The new scheme would replace both taxes with a wholesale fuel tax, beginning at 9.5 percent next January, then rising to 15.5 percent by 2018. The tax will result in 25 cents per gallon sent to the government, raising an additional $1.5 billion annually to repair and maintain the state’s roads and bridges. Meanwhile, the state house wants to set a wholesale tax of just 6 percent, delivering $450 million a year.
Though Governor Rick Snyder is on board with Richardville’s proposal, business groups are split over the wholesale tax plan. The state chapter of the National Federation of Independent Business objects to the new tax, believing the tax could not come at a worse time as president Charlie Owen explains:
While we recognize the need for good roads and adequate funding, this is a difficult time for fuel tax increases on Michigan small-business job providers as we watch the price of gasoline approach $4 a gallon. The rising price of fuel and the recent increase in the minimum wage are already putting pressure on Michigan’s small and family-owned businesses. Raising the gas tax would cut more from their bottom line.
Michigan Chamber of Commerce Senior Vice President Jim Holcomb, however, sees no problem with the proposal because of the amount the tax would raise for road projects per annum. The chamber itself urged state lawmakers to solve the problem before facing the possibility of putting the question before the populace on the November 2014 ballot. If passed, the wholesale tax, in tandem with the state’s general sales tax, would give Michigan the title of having the highest fuel taxes in the United States, up from sixth place right now.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
More by Cameron Aubernon
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- FreedMike I suppose that in some crowded city like Rome or Tokyo, there's a market for a luxurious pint-size car. I don't think they'll be able to give them away here in the U.S.
- TMA1 How much did exchange rates affect this decision? The Renegade is imported from Italy. I'm wondering if that's what caused the price to reach within a few hundred of the much bigger Compass. Kind of a no-brainer to pick the larger, more modern vehicle.
- CEastwood Everytime I see one of these I think there's a dummie who could have bought a real car , but has to say look at me driving this cool thing I can't drive in the rain like an actual motorcycle that I should have bought in the first place ! It's not Batman I see driving these - it's middle age Fatman .
- SilverCoupe I should be the potential audience for this (current A5 owner, considering an S5 in the future), but I can't say it excites me. I have never liked the vertical bars in the grilles of sporting Mercedes models, for one thing. The interior doesn't speak to me either.I would be more likely to consider a BMW 4 Series, though not the current version with the double Edsel grille. Still, I suppose it would be worth a look when the time comes to replace my current vehicle.
- Verbal Can we expect this model to help M-B improve on finishing 29th out of 30 brands in CR's recent reliability survey?