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Forbes: Better if Michigan taxes gas wholesale price

Tuesday, November 11, 2008   (0 Comments)
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Gov. Jennifer Granholm and lawmakers should consider eliminating Michigan's 19-cents-a-gallon gasoline tax and replacing it with a tax on the wholesale price of gas, according to a report released Monday. 


Swapping the taxes would let revenues rise or fall with changing fuel prices rather than tying gas revenues to consumption, which is falling as motorists drive more fuel-efficient cars or cut back on buying gas to cope with prices that at one point topped $4 per gallon. 


The change could boost transportation funding in the long run and might ensure that a bigger share of taxes paid at the pump actually go toward Michigan's deteriorating roads, advocates say. 


The recommendation is one of many listed in the Transportation Funding Task Force report. 


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