Michigan governor calls for nearly tripling per-gallon gas tax, while proposing a tax overhaul under which retirees and low-income earners would get breaks and more businesses would pay corporate income taxes.
Democratic Gov. Gretchen Whitmer on Tuesday defended her proposal to nearly triple Michigan's per-gallon gasoline tax to make it the highest in the nation, promising no more"shell games" or"half measures" to reverse the deteriorating condition of the roads.
The proposal is an attempt to reverse parts of a tax rewrite enacted by her Republican predecessor, Rick Snyder. States across the nation are struggling with how to finance road maintenance and construction as vehicles become more fuel-efficient and generate less revenue from flat per-gallon taxes. New Ohio Gov. Mike DeWine, a Republican, is seeking an 18-cent gas tax increase .
Whitmer said it was not always her plan to seek so large of a tax hike, but once she took office she gained a"real appreciation" for how quickly the nation's worst roads are deteriorating. Those components drew mixed reaction from legislators, while small-business groups denounced her plan to boost taxes on 150,000 S corporations, partnerships and limited liability companies.
"We can't continue to gloss over the long-term structural problem, while asking families, workers and seniors who are already living paycheck to paycheck to pay even more," he said in a statement.
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