Republicans who control Michigan’s House are proposing to boost road spending by dedicating the state’s 6 percent sales tax at the pump to the transportation budget.
Much of that money now goes to schools and municipalities. A House plan unveiled Thursday and given initial approval by a subcommittee would gradually earmark all of the sales tax on motor fuel to road construction.
It is House Republicans’ response to Democratic Gov. Gretchen Whitmer’s call to increase fuel taxes by 45-cents-a-gallon to raise roughly $2 billion more for roads. Republicans say the move would avoid a tax increase. They are pledging to not hurt schools and municipalities that depend on the sales tax revenue, but Democrats question how that is possible and say the plan would not raise nearly enough for roads.
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