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Michigan House GOP Propose a Gas Plan, Dems Disagree Save Email Print
Michigan House Republicans propose a plan to temporarily suspend the 6 percent sales tax on gas.
Posted: 4:34 PM May 12, 2008
Last Updated: 8:51 PM May 12, 2008
Reporter: Tiffany Teasley
Email Address: Tiffany.Teasley@wilx.com

A | A | A

Frank Anderson has put a hold on his trips to Northern Michigan because gas prices have maxed him out.

" I used to try to make trips up north every other weekend or so, and now you have to limit yourself; the money has to go to pay the bills," Anderson said.

And that's the very reason Michigan House Republican Representatives introduced a plan to suspend the state sales tax on gas from Memorial Day to Labor Day. They say it's a quest to make sure summer tourism doesn't decline as gas prices rise.

"Our fear is that tax revenue for the state of Michigan, and also the economy itself will take a tremendous hit because people will be staying home instead of going on vacation this summer," said Rep. Paul Opsommer (R) DeWitt.

"This would save approximately 24 cents a gallon, and so we could save five dollars on a fill up," said Rep. Rick Jones (R) Grand Ledge.

The Michigan Department of Treasury says three quarters of Michigan's gas sales tax revenue goes towards the School Aid Fund, but Representatives say schools won't suffer.

"We will hold K12 funding and revenue sharing harmless by replacing the money with surplus money we had from last year," Jones said.

But Michigan Democrats say the new plan for the pump is just a temporary fuel fix that won't benefit drivers and could jeopardize jobs.

"This proposal would kill jobs, hurt education, and really have no impact on the gas price at the pump," said House Democratic Caucus spokesman Greg Bird.

Bird says there is no surplus from last year's budget, and that the plan cuts directly into school funding.

"There could be possible lay-offs in education jobs across the state," Bird said. "Because we would loose all of that revenue."

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Posted by: sue Location: lansing on May 13, 2008 at 06:45 PM
Maybe we could finance the loss of the 6% sales tax on gas by getting rid of a few legislators.

Posted by: FEDUP Location: Spring Arbor on May 13, 2008 at 02:01 PM
If the lottery money and a portion of the gas tax goes to the schools, why are the schools always hurting for money? Granted removing the gas tax will not lower the price of gas. Everytime there is an issue regarding reducing money for the state it is reported it will affect the schools. Do we have a surplus? One week we have a surplus the next week we have a million dollar shortage. Which liar do we believe. Someone needs to take a better look of what is actually being purchased with each budget and cut the fat. Maybe some of these state grants need to be re-evaluated and be scrutinized to see if they are being used properly.

Posted by: David Location: MI on May 13, 2008 at 12:06 PM
It's a bunch of bull the democrats won't suspend the sales tax on gas. They claim it will hurt schools. Well guess what my friends, there are more people that are affected by gas prices than there people who are in school. The majority should rule, not the student population, the minority.

Posted by: Pam Location: Jackson on May 12, 2008 at 09:31 PM
Who are the idiots who keep electing these officials into office.

Posted by: Anonymous on May 12, 2008 at 07:19 PM
there already laying off teachers.schools are already suffering,and so are many people just because of gas prices.look at the price of food.look at the economy.why we got into the high gas prices and all that lead up to this mess started at the whitehouse.it started along time ago and now we are in the later on effects of our gov involvements with other countries.we let jobs go to other countries and gave and gave.now we pay the price.as far as lowering gas with the taxes on it,it may not be a good idea in the long run.who really knows how it will hurt us later this yr or in the future.winter is where double pay for gas and heat hurt the most.and it will be higher this winter.help will be needed then more than in the summer.food is a big problem as people are going hungry,and people are giving up so much to pay gas prices.remember this is election yr.and each party is doing there best to look good,just so we vote for them.mich is in many problems and our gov continues to make mistakes.

Posted by: James Location: Stockbridge on May 12, 2008 at 05:42 PM
The budget surplus should be given to the schools to offset the shortfalls for next year.

Posted by: RICH Location: HASLETT MI on May 12, 2008 at 05:19 PM
SORRY BUT WE NEED TO RAISE FUEL TAX AND USE THE MONEY FOR WHAT IT WAS INTENDED FIXING THE ROADS. IF WE FREEZE THE FUEL TAX FOR ANY REASON THE PRICE OF GAS WILL JUST GO UP ANY WAY TO MATCH THE COUNTRY AVERAGE.EXAMPLE OHIO AND IND. HAVE A HIGHER FUEL TAX THAN MICHIGAN YET GAS IS ALWAYS ABOUT 10 CENTS LESS THAN MI. WAKE UP STOP BEING FOOLED BY THE HYPE

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