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Wednesday saw a new proposal from Governor Rick Snyder that some say could ease the pain at the pump.
Governor Snyder has announced plans to drop the tax that Michigan charges on each gallon of gas and diesel fuel in favor of a tax on the wholesale price of fuel.

To keep roads like Westnedge Avenue in Kalamazoo in good shape, Governor Snyder is looking to new sources of revenue, now he's looking to the gas pump.

“We're here to talk about something that typically doesn't get a lot of attention, infrastructure,” said Snyder.
The condition of Michigan's roads and infrastructure are what Governor Snyder says led him to make changes to how the state taxes gas.

His proposal, announced Wednesday and broadcast online, would replace the old state tax on each gallon of gas with a new system and use the new revenue to fix roads and bridges.

On Wednesday drivers filling up their tanks were concerned about changes to already unpredictable gas prices.

“I'm skeptical,” said Ronalie Turcott. “I want to know where the money went with all the stuff that was supposed to fix our roads.”

Here's the breakdown. If your car holds 15 gallons of gas, when you fill up the state currently charges you 19 cents per gallon, bringing the total tax to about $2.85. Under the new proposal that tax would be thrown out, with the wholesale prices being taxed instead.

If gas at the pump is $3.50, wholesale prices are generally 50 cents less than the price at the pump. That means under the governor's plan, you would pay a 6.7 percent tax on the $3.00 wholesale price.

Governor Snyder says that will allow the state to finally give some attention to roads and infrastructure.
“We've under-invested in them,” said Snyder. “We want to take advantage of them, but how often, because we take them for granted, they haven't gotten enough attention.”

http://www.wwmt.com/articles/michigan-1397511-newschannel-proposes.html

Posted in: News, Video
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