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This article was republished with permission from Crain’s Detroit Business and was written by David Eggert.
Michigan Gov. Gretchen Whitmer proposed a $3 billion road-funding plan Monday, including tax increases on businesses and marijuana to help facilitate road and bridge maintenance.
The proposal also includes $500 million in unspecified spending cuts.
The Democratic governor called for:
- Changing how marijuana is taxed, closing a “loophole” and transitioning to wholesale rather than point-of-sale taxation to generate $470 million. Whitmer said similar products like cigarettes and other tobacco products are taxed that way.
- Eliminating the 6% sales tax on fuel and, it appears, replacing it with a revenue-neutral hike on per-gallon gasoline and diesel taxes to generate $1.2 billion for roads, bridges and transit.
- Asking “massive corporations” and “Big Tech” industries like Amazon to “pay their fair share” to use roadways to generate $1.7 billion. Details were not released. It could include a corporate income tax increase, as several sources have said in recent days. There also is talk of a tax on transportation services such as retail deliveries, ride-hailing, taxis, limousines, towing, parking and heavy trucks. Another possibility is raising taxes on internet gambling and sports betting.
“Since day one, I’ve been focused on fixing the damn roads, and while I’m proud of the progress we’ve made, there’s still a lot more to do,” she said in a news release. “Today, I’m excited to introduce my brand-new plan that provides a long-term, sustainable solution to fix our roads so we can help more Michiganders stay safe on the road, save money, and get where they’re going faster. My plan is fiscally responsible and balanced, with both new revenue and cuts so we can lower costs for families. I’m grateful to (House) Speaker (Matt) Hall for sharing this priority, and I look forward to working with him and both parties in the Legislature to get this done.”



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