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Bulletins, News, and Press: Legislative Bulletins

Legislative Update: Federal Infrastructure Stimulus and New Road Funding Tax Considered

Wednesday, October 22, 2008   (0 Comments)
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Congress Considers Infrastructure Investment in 2nd Stimulus Package

The U.S. Congress will be considering a second stimulus package after the November election.  Unlike the previous package, policymakers are considering a major investment in infrastructure to help stimulate the nation’s struggling economy.

MITA members are encouraged to contact their elected congressional leaders to encourage them to support infrastructure investment and let them know that such spending will create jobs and boost Michigan’s economy.

Michigan-based Think Tank Recommends Value-Based Fuel Tax

In response to suggestions that our state’s gas tax is antiquated and can’t keep pace with transportation needs, a highly-regarded Michigan-based think tank—Pubic Sector Consultants—recently recommended that fuel taxes not be based on number of gallons sold, but rather on a percentage of the overall sale price.

The novel approach, outlined for the first time at the Task Force on Transportation Funding (TF2) in October, suggests that the state get rid of the 19-cent per gallon gas tax and replace it with a tax based on percentage of the sales tax.  Such a tax would increase as overall gas prices increase.  

This past year, as gas prices skyrocketed, transportation revenues plummeted because consumers dramatically cut back on the amount of gas they purchased.  The Public Sector Consultants plan would relieve that problem and provide a self-indexing mechanism to help keep up with transportation needs over time.

If you have any questions please contact Mike Nystrom, Vice President of Government and Public Relations at ; or Keith Ledbetter , Director of Legislative Affairs at ; or by calling the MITA office at (517) 347-8336.

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