LANSING (WWJ) - As prices for regular gas across the state average out to $4.17 a gallon, lawmakers are debating on pausing sales tax on gas or pausing the gas tax in an effort to give Michiganders relief at the pump.
So what's the difference and why does it matter?
Governor Gretchen Whitmer proposed temporarily suspending Michigan's 6% sales tax on gas Friday afternoon, which would save drivers about 25 cents a gallon.
Michigan Republicans, on the other hand, want to pause the state's gas tax which would save drivers 27 cents a gallon.
The Governor hit back at Republicans who said pausing the 6% sales tax on gas won't be enough to help struggling Michiganders.
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“A short-term pause is a fiscally-responsible action we can take that will provide drivers relief at the pump right now, not next year, while also protecting funding for road repairs and saving tens of thousands of good-paying construction jobs,” said Whitmer.
The governor said while she is open to negotiation with state lawmakers, she will not give in to legislation that take funds away from badly needed road repairs, construction jobs and education.
“I look forward to meeting with Republican and Democratic leaders next week to negotiate on our shared priorities," Whitmer said. "I’ll work with anyone to help Michiganders get more for their money. Let’s get this done.”
Whitmer said she is working to bring relief at the pump to Michiganders in other ways; every insured Michigander is set to receive $400 refund checks, she has supported calls for Congress to suspend the federal gas tax and is working to roll back the state's retirement tax as well as triple tax credits for working families.
"Cutting taxes for seniors and working families will uplift over 1.2 million Michigan families in the long run, putting thousands back in their pockets so they are not as heavily impacted by price increases," Whitmer explained.
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The governor went on to hint that she would veto a bipartisan bill that would give Michiganders over $2.5 billion in tax relief.
Senate Majority Leader Mike Shirkey, R-Clarklake, voiced his displeasure at the move, saying the people of Michigan deserve better.
“No Michigander is immune from record-high gas prices and inflation, and no Michigander should be excluded from tax relief," Shirkey said on Friday evening.
"Our bipartisan bill would have lowered taxes for every resident, from families with young children to seniors on fixed incomes and everyone in between."
Lansing lawmakers remain gridlocked while they continue to negotiate tax relief for fellow Michiganders.
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