Michigan Republicans Unveil $1B Plan to Fix Roads By Taxing The Poor (Again!)
More: House Republicans Unveil $1B Roads Plan to Prioritize Spending, Cut Earned Income Tax Credit
LANSING, MI — Michigan House Speaker Kevin Cotter on Wednesday unveiled a long-term plan to fund new road repairs without a major increase in the gas tax or the sales tax.
Instead, the plan would dedicate future revenue growth, re-prioritize some restricted funds, raise diesel taxes to match gas, create new fees on electric and hybrid vehicles and eliminate the Earned Income Tax Credit.
Cotter, who unveiled the plan alongside Republican colleagues at the Michigan Capitol, said it would eventually boost road funding by up to $1.05 billion a year.
“The people want a solution that fixes the roads and doesn’t do a lot of other things,” said Cotter, R-Mt. Pleasant, referring to last week’s voter rejection of Proposal 1.
“I heard them say fix the roads, but just fix the roads. I think we can learn from that.”
The House plan is largely dependent on projected revenue growth. [Paul Ryan’s Magical “Dynamic Scoring”!—VB] It would dedicate $350 million in new general fund money to roads in 2016 and up to $700 million by 2018. The new funding would go to state and local road agencies, bypassing the traditional formula that also includes mass transit.
While Proposal 1 would have expanded the refundable Earned Income Tax Credit to provide relief to low-wage workers, Cotter’s plan would eliminate the state version altogether for a projected savings of $117 million.
“We are (currently) taking tax dollars from some taxpayers and giving them to others, and here we are putting them into roads,” said Cotter.
“All the predictions about paving the roads with poor people if Proposal 1 failed have come true,” said state Rep. Brandon Dillon, D-Grand Rapids.
Roughly 780,500 taxpayers received the Michigan EITC in tax year 2013, according to the state Treasury, with the largest credits going to filers who earned between $15,000 and $20,000.Democrats are sure to oppose any attempt to scale back the EITC, which supporters champion as a hand up for the working poor.
“All the predictions about paving the roads with poor people if Proposal 1 failed have come true,” said state Rep. Brandon Dillon, D-Grand Rapids.
Dillon, who sits on the House Appropriations Committee, also suggested that the plan should be referred to what he’s previously called the “committee on hocus pocus.”
“Basing a plan around projected economic growth is laughable on its face,” he said. “It’s not going to work.”
I see the Crazy People in Michigan want to try all the bullshit voodoo that has already wrecked Kansas and Wisconsin.
They think 40 YEARS OF “LIBERAL POLICIES” WRECKED DETROIT!!!! but they want to apply methods that are guaranteed to cause wreckage faster and more widespread than ever dreamed possible.
How do we stop these people? What will they try next, sell Great Lakes water to Texas?