Thursday, June 11, 2015

Michigan Road Legislation Presages Midwest Legislative Battles

            Michigan’s state legislature is embroiled in road repair funding battles which could easily spill over into the capitals of other Midwestern states struggling to find ways to fund road and bridge projects in this era of increasing gas mileage and the consequent decrease in motor fuel tax revenues. One outrageous bill in the proposed package would even take away the state’s earned income tax credit for poor families and toss that cash into the road and bridge budget.

            Other proposals include increasing the diesel fuel tax to match the rate on gasoline – opposed by truckers – and increasing the license plate fees on electric and hybrid vehicles by $100 per car to offset the fact they obviously contribute less, or nothing at all, in motor fuel tax revenue though they do use the roads and bridges. Everyone acknowledges there’s a problem, but there is absolutely no agreement on a solution.

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