Michigan Senate punts on state gas tax holiday
Published in News & Features
LANSING, Mich. — The Democratic-controlled Michigan Senate avoided, during its Thursday meeting, a plan to temporarily suspend the state's 52-cent-per-gallon gas tax amid bipartisan calls for action to combat high fuel costs.
The Senate was in session for about 21/2 hours, but Democratic leadership didn't hold a vote on a gas tax holiday. Likewise, a spokeswoman for Majority Leader Winnie Brinks, a Democrat, didn't respond to a request for comment on the decision.
After the session ended, Senate Democrats departed the chamber and gathered inside an office building across the street from the Capitol for a private meeting. As some of them left that event — with multiple carrying plates of snacks out of Lansing's Boji Tower — they gave a wide array of answers on their feelings about a potential gas tax holiday.
"This is a problem that was created in Washington and that they should solve," said Sen. Stephanie Chang, a Democrat.
Like others, Chang said she was still considering a gas tax suspension. But Chang said she was concerned about the idea from a responsible budgeting perspective.
Asked three different questions about the topic, Democratic Sen. Dayna Polehanki gave the same answer to a reporter: "We're not leaving anything off the table."
Sen. John Cherry, a Democrat, said people were struggling because of Republican President Donald Trump's decision to launch a war against Iran in February and because of tariffs instituted by his administration.
"Would this solve the problem? Probably not," Cherry said of a gas tax holiday. "It's not going to solve the war, which is the root of the problem."
Republicans currently control the Michigan House, where GOP Speaker Matt Hall called the idea of a gas tax holiday "not realistic." Some House Democrats have advocated for proposals to suspend the state gas tax for three months if the average price of a gallon of gas reaches $5.
Such a move could drop state revenues by somewhere around $600 million. Under the House Democrats' plan, the money would be replaced with cash from the state's rainy day fund, which has about $2.2 billion in it.
As of Oct. 1, the average price of a gallon of unleaded gas in Michigan was $4.53, according to AAA's fuel price-tracking data. That's down from a week ago when it was $4.80 but still sharply elevated from a year ago, when the average price was $3.17.
A gallon of diesel fuel, on average, costs $6.68 across Michigan, down from a record-high of $6.89 set on Sept. 23, according to AAA.
The cost of fuel has had ripple effects across the economy and in the looming midterm election, which is less than five weeks away.
Michigan's two major party U.S. Senate candidates, Republican Mike Rogers and Democrat Abdul El-Sayed, have called for suspending the state gas tax and the federal gas tax, which is 18 cents per gallon, to provide people some relief.
U.S. Rep. John James, the Republican candidate for governor, has also been pushing for a suspension of the state gas tax.
"Our Republican-led neighbors in both Ohio and Indiana have suspended their state gas tax to give their people relief at the pump," James wrote on X on Oct. 1. "Democrats in Lansing should’ve done this weeks ago."
James has specifically targeted Brinks, who leads the Senate but is also the running mate of the Democratic nominee for governor, Secretary of State Jocelyn Benson.
During a news conference on Sept. 28, Brinks criticized James for supporting the war in Iran and said she was open to a potential gas tax suspension.
"We'll return this week to Lansing and have some conversations with legislators about how we'd like to approach this," Brinks said.
Inside the Senate chamber on Oct. 1, Sen. Jeff Irwin, a Democrat, told reporters if lawmakers suspended the gas tax, it wouldn't necessarily mean the price would drop because other forces could influence the price people pay at the pump.
"There are people right now who are hurting. Why are they hurting? Because energy prices are exploding," Irwin said. "Why are energy prices exploding? Because the president went and started this completely foolish war with no strategy, no plan."
After leaving the Senate Democrats' private meeting near the Capitol, Sen. Darrin Camilleri said the increase in gas prices was because of Trump's war. Senate Democrats had taken steps to promote affordability, including attempting to create a state board that could cap prescription drug costs, Camilleri contended.
Camilleri, who's widely expected to be the next Senate leader if Democrats maintain their majority in the November election, said he wasn't ruling anything out.
"There is a large conversation that we need to have about how we can bring down costs for residents," he said.
Democratic Sen. Veronica Klinefelt said she found out on the morning of Oct. 1 that the gas tax holiday was a possibility.
"I'm waiting to hear people out," Klinefelt said of her position on the subject.
The Michigan Senate might next meet on Oct. 6.
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