Skubick: Road fix funding with a tax rollback?

LANSING, MI (WLNS) – Senate Republicans have added a new wrinkle to their efforts to fix the roads. The leadership wants to add an income tax rollback to the package.

On Inauguration Day last January the new senate republican leader talked about an income tax rollback. For the last five months, Mr. Meekhof has not said what, but he’s talking now.

Under the senate republican plan, it would cut the income tax rate by 1/10 of a percent, until the rate gets to 3.9 percent. It would also raise the gas tax. The question is would it raise the $1.2 billion that the governor says the state needs to fix the roads.

Coupling a tax increase with a tax rollback would take some of the political edge off of the tax boost, but that overall question remains, is there enough revenue? But the former head of the house fiscal agency says rolling back the income tax rate could cost $225 million a year and would impact on state services.

“That’s going to impact everything funded by general fund that which is going to include education, could potentially impact k-12, higher ed, community colleges, also local government , public safety. You know, if you don’t replace that money, it’s going to be a budget cut,” said Mitch Bean, former fiscal agency director.

This senate democrat says a revenue neutral package is unacceptable more money is needed.

“It has to raise new revenue and it has to be the right amount to actually fund the problem. We can’t just keep putting a bandage on this problem and saying that it’s solved,” said State Senator Curtis Hertel (D), Lansing.

The senators return on Tuesday and will go beyond closed doors to supposedly put the finishing touches on this package. Then there will likely be a senate committee hearing on this Wednesday but because a handful of senators will not be here this week, a final vote this week is not likely.

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