Friday, May 22, 2015

After Failed Tax Hike, Michigan Finds $400 Million for Roads

Image Credit: tkamenick/Flickr

Across the United States, municipalities, states, and the federal government are looking for ways to fund the backlog of infrastructure needs. Michigan, for example, put a tax hike on the ballot which would have funded road construction, education, transit and rail, local government mandates, and tax breaks for low- and moderate-income families. To fund this, the sales tax would have increased from 6% to 7%, removed the sales tax from fuel sales, and hiked fuel taxes. However, voters emphatically voted no; in fact, 80% voted no on the ballot initiative. Issues with the program include the complicated wording of the law and the expectation that fees for roads should be spent on roads. Governor Rick Snyder and the Michigan Legislature will continue to work on a long-term solution for road funding.

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