(Published 03/10/2022 - MIRS.news) Average gas prices in Michigan hit an all-time high of $4.261 a gallon Thursday, up a penny and a half from yesterday, which has emboldened Republicans to press Gov. Gretchen WHITMER to sign legislation to suspend the state's gas tax six months.
Whitmer appears to be leaning against signing such a bill due to the budgetary constraints that it would cause, but she hasn't specifically vowed a veto, yet, either. If the Senate follows through on the original plan to dump a gas tax pause on Whitmer's desk by next week, she could be a position to act on that bill and a previously approved income tax rollback at the same time.
If she were to sign the gas tax pause, she would have to explain to the House Democratic caucus why her budget director urged them to vote against it while she signed it (See “House Votes To Suspend State's Gas Tax For 6 Months,” 3/9/22).
The Governor has not negotiated with the House and Senate on a compromise for either the gas tax pause or the income tax cut, MIRS has learned. The quadrant was supposed to meet Tuesday, but she was invited to Washington D.C. at the last minute. Outside of that, the Republican leadership introduced their gas tax pause 30 minutes before the scheduled meeting, which raises questions as to how productive the talks would have been anyway.
Republicans seem stuck into forcing the Governor to veto both a long-term tax cut and a short-term tax pause eight months prior to her reelection bid. For her part, she hasn't changed off her messaging that a higher Earned Income Tax Credit and a ban on taxing retirement income is the way to give targeted tax relief to those who need it the most.
“We are moving full steam ahead,” said Budget spokesperson Lauren LEEDS. "We have successfully negotiated three balanced budgets that delivered for Michiganders. The Governor proposed targeted tax cuts to help seniors and our working families that were paid for in her recommended budget. As we look toward this upcoming budget, we have an opportunity to make even greater investments in the things that matter most to Michiganders, all while eliminating the retirement tax to save seniors $1,000 per year on average and cut taxes for working families to put $3,000 back in people’s pockets each year.
“We look forward to working with our legislative partners to get it done.”
The working theory at this point is that Whitmer vetoes both the income tax cut and the gas tax pause on the same day, likely late on Friday, March 18, and decries both as not-serious political stunts. From there, she rides out any negative publicity until budget talks start in earnest later this spring and she can get lawmakers to pass a tax cut she will support.
The AAA numbers shows Michigan's average is a little less than the $4.318 national average. The previous high of $4.26 a gallon from May 2011 would be $5.37 today when adjusted for inflation.
Republican gubernatorial candidate Kevin RINKE upped the ante on prior calls from James CRAIG and Michael BROWN to suspend the state's gas tax by suggesting that the state's sales tax on gasoline to be lifted, as well, something Senate Minority Leader Jim ANANICH (D-Flint) suggested on Wednesday.
As of June 30, 2021, the sales tax on gasoline was 14.4 cents a gallon and 15.7 cents a gallon for diesel.
Rinke also called for the Governor to back off her opposition to Line 5 and expedite the permitting needed to start construction of the underground pipeline under the Straits of Mackinac.
"These simple actions can make a difference today and long into the future," Rinke said. "The liberal policies of career politicians like Whitmer and Biden have brought about runaway inflation fueled by massive increases in energy costs, and they must take action or Michigan families will continue to suffer."
The Republican National Committee declared that Whitmer and U.S. Energy Secretary Jennifer GRANHOLM, Michigan's former governor, "are trying to turn a lost decade into a lost century with their war on American energy."
