LANSING, Mich. — Governor Gretchen Whitmer released a new plan to increase funding for road construction in Michigan, centered around a new tax levied against corporations.
In total the governor's road map calls for $3 billion to drive improvements to lanes across the state and boost public transportation. The reveal came nearly a month after Republicans published their own three-plus billion dollar plan in January.
Whitmer's plan would be primarily supported by a new tax on businesses that would be expected to bring in $1.7 billion. The governor is targeting technology companies with this tax, specifically identifying Amazon, X, Facebook, and TikTok. Her office says Michigan's laws do not account for companies in the tech industry and projects involving those companies often involve several heavy loads that break down roads faster than the average vehicle.
"My plan is fiscally responsible and balanced, with both new revenue and cuts so we can lower costs for families," said Whitmer.
State Senator Aric Nesbitt, the Republican leader in the upper chamber, called the governor's plan a repeat of her past ideas to raise more money for the roads.
"Now, she wants to reach deeper into the coffers of Michigan businesses and impose unspecified fees and taxes that will surely trickle back down to consumers," said Nesbitt.
Whitmer also calls for a portion of the state's taxes collected at the pump to be kept for road funding. Currently, 25% of taxes at the pump are diverted to other state funds.
She also wants to subject the marijuana industry to the wholesale tax, just as tobacco products are. Whitmer claims marijuana businesses pay the fourth-lowest taxes in Michigan for any state in the U.S. Implementing that tax could result in $470 million in revenue.
The governor says she'll find better efficiency in the state's program to free up $500 million for road and bridge projects.
Whitmer also calls for $250 million to invest in public transportation options across the state.
Michigan
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Whitmer noted that both she and Republican leadership are prioritizing a solution to road funding in 2025.
"I’m grateful to Speaker Hall for sharing this priority, and I look forward to working with him and both parties in the legislature to get this done," said Whitmer.
REPUBLICAN'S ROAD FUNDING PLAN
State Republican's issued their own plan to fund road construction on January 16. State House Speaker Matt Hall's proposal totals more than $3.14 billion.
The main driver is funneling $2.2 billion from revenue generated through the corporate income tax, including money diverted from a fund used to attract corporations, preventing legislative earmarks, eliminating business credits, and an estimated increase in the state's general fund.
Speaker Hall, like the governor, calls for all taxes collected at the pump to be dedicated to road funding, but his idea would exempt gas from sales tax. In exchange he would pass a motor fuel tax that would make up the difference.
The GOP promises its plan would not create any new taxes.
“Ensuring value for taxpayer dollars is important to the people we represent, and our priorities reflect that by targeting inefficiencies and waste,” said Speaker Hall.
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