Gas Tax Increase?
A TAX INCREASE I MIGHT BE ABLE TO LIVE WITH: Gas tax increase weighed as option to improve Michigan roads.
Supporters of higher gasoline taxes, including the chamber, have suggested an increase of up to 3 cents per gallon per year over a three-year period, saying the potential 9-cent-per-gallon increase would help boost economic development in the state.
I can (maybe) buy this as it’s a sales tax and those generally make more sense than, say, an increase in the state’s income tax.
But don’t lose sight of this:
Michigan sends more in federal gasoline taxes to Washington than it gets back. This year, it’s getting just 91.5 cents of every dollar it sends to Washington, an amount that will rise to 92 cents in 2008 and 2009.
Bump that up a few more cents and maybe the state increase could be significantly smaller.