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Mackinac Center: Gas Tax Hike of 45 Cents May Kill More than 22,500 Private Sector Jobs

April 8, 2019
By Michael LaFaive

An analysis of Michigan Gov. Gretchen Whitmer's proposed 45-cent gas tax hike, and alternative tax/spending offsets.

Michigan Gov. Gretchen Whitmer wants to increase the state gas tax by 45 cents per gallon to finance road infrastructure repairs and upgrades. The Mackinac Center ran this scenario through a software package called the State Tax Analysis Modeling Program, or STAMP, to measure its impact on the economy.

STAMP estimates what would happen if the tax were increased by 15 cents in October and then by another 30 cents in 2020. The tax increases, it says, would cost more than 22,500 private sector jobs and raise just under $2.5 billion annually by fiscal 2022. They would also increase government employment by 6,300 jobs.