House Speaker Says Gas Tax Increase Vote Would be Difficult

Gathering the votes for a 15 cent per gallon tax increase, passed by the Senate last week, would be a stretch in the House Republican Caucus according to Speaker of the House Kevin Cotter (R-Mount Pleasant). Mr. Cotter stated that the diesel tax increase of 4 cents per gallon would be the highest tax increase that the Republican caucus could support.

While both the House and Senate transportation plans include reprioritization of funds and generate new revenue, the plans still differ greatly in the details. The Senate passed a package void of cuts to the Michigan Economic Development Corporation (MEDC) and maintaining the Earned Income Tax Credit (EITC), while increasing the gas tax by 15 cents and rolling back the Income Tax. In comparison, the House passed a 4-cent increase on the diesel fuel tax and then tying both the gasoline and diesel tax rates to inflation. The House package also saw cuts to MEDC and elimination of the EITC.

The Speaker stated that while there is strong support within his caucus to decrease the income tax, the complex formula used in SB 414 does not guarantee a decrease, making it difficult sell to his members. He continued saying that the diesel tax increase passage was by incredibly slim margins, meaning that any further push for increasing revenue through taxes would have a hard time passing the House even with Democrat support.

When asked about the lack of cuts to the EITC and MEDC, Speaker Cotter stated that the cuts to MEDC are important to the members of his chamber. The Speaker said that while the House will return to session July 14-15, he is still not sure if the transportation package will be brought to the floor for a vote. He also stated that he does not currently plan to have a committee hearing on SB 414 before a vote is taken.

posted by PAA Online , Friday, July 10, 2015 10:11 AM
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