Michigan Chamber of Commerce, the largest business advocacy group in Michigan, has proposed raising the Michigan gasoline tax and vehicle registration fees. The increase would raise of $1.5 billion a year for road construction/repairs and for mass transit improvements. The last time it was raised was in 1997.
Republicans in the legislature have said no new taxes. New taxes appear to be off the table as the legislature and the Governor negotiate the FY 2010 state budget (begins October 1, 2009). The Chamber and former Senate Republican Majority Leader Ken Sikkema have said that Republicans could still remain the party of fiscal restraint and tax increase resistance if they support this gas tax increase.
The gas tax and the vehicle registration revenue sure would put people back to work on road projects, bridges and mass transit repairs/expansions. Would also result in workers coming off of unemployment compensation and off public assistance.
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I think the public's opinion on these new taxes would rely heavily on the amount in which they were increased. Also, the number of jobs created, where they were, and the longevity of said jobs would also all be large factors on public support.
ReplyDeleteRaising registration fees wouldn't apply to me becuause I'm from WI, but I think raising the price of gas would probably cause some drama. At least in my case, I'm a poor college student who has no intention of living in MI the rest of my life. I understand that MI has one of the worst economies at the moment? and jobs would be good, but I look at the situation right now. I gage things by what comes out of my pocket today and I think a lot of people are that same way. Beneficial in the end or not, people are not going to be happy with raising prices.
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