Mackinac Analyst on Frank Beckman Show

James Hohman talks about Proposal 1 study findings

Assistant Director of Fiscal Policy James Hohman discusses his Proposal 1 study on "The Frank Beckman Show" on WJR AM760.

The May 5 ballot proposal raises revenue to fix the roads by increasing the sales tax from 6 percent to 7 percent and changing the way gas is taxed. The study shows the proposal will cost taxpayers $2 billion and the average household approximately $500 more per year. At the Energy Information Administration’s estimate average gas price for 2015 of $2.39, Proposal 1 would increase the price per gallon by 10 cents.

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Most of the revenue raised under this proposal goes to road construction and maintenance, however, the proposal does include additional spending such as increased funding for public schools and increased earned income tax credits.