Michigan Governor Gretchen Whitmer has unveiled a plan to boost funding for the state’s road improvements by increasing taxes on marijuana and businesses, including big tech companies. The proposal, which is estimated to generate $3 billion in revenue, aims to provide a long-term and sustainable solution to fix Michigan’s roads.
Whitmer’s plan would require big tech and corporations to pay their fair share, with a focus on companies like Amazon, Facebook, and TikTok. The governor’s office has not provided specific details on how the new taxes would work, but it is expected to raise $1.6 billion in additional revenue.
The plan also includes a wholesale tax on marijuana, which would generate an additional $470 million. This tax would be applied to the wholesale price of marijuana, which is currently exempt from the state’s 32% tax on tobacco products.
Whitmer’s proposal has been met with skepticism from some lawmakers and business groups. Republican lawmakers have already expressed opposition to the plan, with one stating that “under no scenario” would they support a Democratic push to increase taxes.
The governor’s plan has also been criticized for not providing enough information on how the new taxes would work and how they would affect small businesses and individuals. The Michigan Cannabis Industry Association has expressed concerns that the proposed changes would make Michigan’s cannabis retail market one of the highest taxed in the country.
Whitmer’s administration has presented its budget proposal for next year, which includes a provision to divert all tax revenue on gasoline sales to roads. This would effectively shift money from the 6% sales tax on gas to local governments and schools.
The plan has also been criticized for not including an increase in the corporate income tax, which has been a major source of revenue for the state. Some business groups have expressed concerns that an increase in the corporate income tax would affect small businesses and the state’s business-friendly climate.
Overall, Whitmer’s plan aims to provide a long-term and sustainable solution to fix Michigan’s roads, but it remains to be seen whether it will be successful in the face of opposition from lawmakers and business groups.
