Gov. Whitmer Explains Pausing Sales Tax on Gas to Ease Michigan Gas Prices
As Michiganians dig deeper and deeper into their pockets every time they fill up, Governor Gretchen Whitmer is proposing a pause on Michigan's six percent sales tax in order to provide a little relief at the pump.
The More for My Money Program
Governor Whitmer announced the More for My Money program last week during her state of the state address.
In addition to pausing the six percent sales tax on gasoline, the plan would also eliminate the retirement tax on seniors and triple the earned income tax credit for working families, according to Michigan.gov.
"People need relief now and that's why the 'More for My Money' plan makes sense and would give people some breathing room with inflation and with increased gas prices," Whitmer says in the video below.
Legislature's Bill Vetoed
On Friday, the governor vetoed a bill proposed by Michigan's legislature that would suspend Michigan's $0.27 per gallon gas tax. Although that bill had been fast-tracked through Michigan's House and Senate, Whitmer says that relief would not be felt until 2023.
"The legislature's plan doesn't actually go into effect until next year," Whitmer says. "That's not real relief for people."
The governor clarified that she would be willing to consider any proposed legislation that would mean immediate relief for drivers.
How Would Michigan Pay for a Sales Tax Pause?
The governor says Michigan has been able to turn a $3 billion deficit into a $7 billion surplus. Whitmer says that pausing the sales tax on gasoline, if modeled after other states that have made similar moves, would not have an impact on school funding
The details of the structure of the pause were not detailed.