Proposal to suspend gasoline sales tax draws fire

May 12, 2008 - 7:51 PM

A Republican plan to temporarily suspend Michigan's sales tax on gasoline for the summer driving season is drawing opposition from Democrats who say the state can't afford it.

 

House Republicans have proposed suspending the state's 6 percent sales tax on gasoline through Labor Day. That would save motorists more than 20 cents a gallon at current prices.

 

The plan could cost the state treasury more than $200 million. Republicans say school funding would be protected by using a budget surplus from last fiscal year, but Democrats say there isn't an available surplus.

 

Spokespeople for Governor Jennifer Granholm and House Democrats said the plan would take money away from schools and other programs.