David Eggert authored this article. It was republished by Crain’s Detroit Business with their permission.
Michigan Gov. Gretchen Whitmer, Michigan’s governor, proposed Monday a road funding plan of $3 billion that included a tax increase on business and marijuana. This would help fund road and bridge repairs.
This proposal includes an additional $500,000,000 in cuts to unspecified expenditures.
The Democratic Governor called for:
- To raise $470,000,000, the government will change how marijuana is taxable. It will close a “loophole”, and tax it at wholesale instead of point-of-sale. Whitmer noted that tobacco and cigarettes are similarly taxed.
- It appears that the fuel tax of 6% will be replaced by a per gallon increase in gasoline and diesel taxes, which would generate an additional $1.2 billion to fund roads, bridges, and public transit.
- The $1.7 billion will be generated by asking “major corporations” like Amazon and the “Big Tech industries” such as Amazon to pay their “fair share” of road usage. No details were released. As several sources said recently, it could be a rise in corporate income taxes. Taxes on services like retail delivery, taxis and limousines, as well as towing, parking, heavy trucks, are also being discussed. Taxes on sports betting and internet gambling are also possible.
She said, “I’ve focused my efforts on repairing the roads since day one. I am proud of our progress, but there is still much more work to be done.” “Today I’m proud to announce my new road-fixing plan. It’s a long-term and sustainable way to help Michiganders save money while getting to their destinations faster. The plan I’ve developed is both fiscally responsible, and it balances new revenues with cuts to reduce costs for Michigan families. “I’m thankful to House Speaker Matt Hall for sharing my priority. I look forward working with both parties and him to achieve this.”