Snyder makes tax, fee proposals for road repairs

Gov. Rick Snyder on Wednesday proposed raising billions of dollars to patch up Michigan's ailing roads and bridges by shifting motor fuel taxation from the retail to the wholesale level and boosting vehicle registration fees.
AP Wire
Jan 16, 2013

Generating new money for Michigan's transportation network was the centerpiece of Snyder's third annual State of the State address, delivered to a joint session of the state Legislature in the Capitol. The Republican governor sought support from both parties midway through a turbulent term in which he has pleased business interests but alienated Democrats and organized labor with tax relief for corporations and measures that have weakened unions' powers.

With studies showing revenues lagging behind Michigan's transportation infrastructure needs, Snyder offered proposals meant to produce $1.2 billion a year for road and bridge repairs, a figure that could rise in subsequent years. Replacing the retail tax on fuels, which has been stuck since 1997 at 19 cents per gallon for gasoline and 15 cents per gallon for diesel fuel, with a wholesale tax would enable revenue to rise with inflation as the cost is passed along to motorists.

Snyder also proposed raising the statewide fee on vehicle registrations and giving local governments the authority to impose further increases for local road and street fixes.

Aides acknowledged it would be difficult to win approval in a legislature where tax-averse Republicans are in the majority, but said the state has no other choice as it seeks to attract new businesses and jobs. Studies show that if nothing is done to generate more funds to fix potholes and repair bridges, 65 percent of Michigan's roads will be in poor condition by 2020, said Bill Rustem, senior policy adviser to the governor.

Elsewhere, Snyder was calling for an array of new initiatives dealing with education, the environment and the economy.

He proposed moving more state social workers into troubled elementary schools, increasing the state's rainy day fund, and creating an agency to prevent insurance fraud.

Comments

Lena

He'd better get me a raise in pay then to cover all this. I'm already drowning.

BTL2A

Does Snyder just say "to create new jobs" after everything?

Walking Alive

Bigger gubmint, higher state taxes/fees, allowing local increases (even when paid for with the new state fees?).
Sounds about right for the Right, right? Where is their outrage about this? Let a Dem gov propose it and look out! Recall!!
How about we just cut spending? Or maybe we can have this Dick's Chinese buddies repair our roads for us?

Wingmaster

Agree Walking, takes less creativity to raise taxes. Easiest place to get money is from the low information voters. Notice how no matter what income level your at you pay for this one!!

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