The Michigan legislature is considering a suspension of Michigan’s gas and diesel tax for the next six months, in light of historic prices at the pump. Additionally, Gov. Whitmer has called on Congress to suspend the federal gas tax.
Michigan’s gas tax – $0.27 per gallon – is a key component for funding Michigan road construction projects. Suspending the gas tax could result in a devastating blow to fixing Michigan’s already failing roads.
Suspending Michigan’s gas tax will cut off a key source of revenue for the state, potentially damaging Michigan’s credit rating. With bonding funding billions in road construction projects across the state, any damage to Michigan’s credit rating would jeopardize funding for those projects.
By suspending Michigan’s gas tax, many Michigan infrastructure projects would be immediately put at risk.
Michigan’s gas tax goes towards Michigan’s transportation fund. Suspending this tax would immediately cut off revenue that is anticipated to fund road repairs across the state. We cannot afford to have this happen.
As construction season is about to begin, suspending Michigan’s gas tax would jeopardize the hundreds of projects that are planned for this year. At a time when we need to be filling potholes and fixing roads, suspending Michigan’s gas will stop the source of revenue that Michiganders rely on to keep our roads in a safe condition.
Simply put, suspending the gas tax will result in road construction projects being jeopardized.