Mike Rogers calls for gas tax pause. It’s a no-go, says state GOP leader

GOP US Senate candidate Mike Rogers on Thursday called for a suspension on both state and federal gas taxes
The idea has gained some traction as gas prices skyrocket amid conflict in the Middle East
But Michigan House Speaker Matt Hall says suspending the state gas tax could jeopardize budget, bipartisan road deal

As fuel prices soar across Michigan and the country, Republican US Senate nominee Mike Rogers on Thursday called for a suspension of both state and federal gas taxes.

But at the state level, stopping the 52.4-cent gas tax — even temporarily — would jeopardize a recent bipartisan deal that shifted more money paid at the pump toward road repairs, said Michigan House Speaker Matt Hall, a Richland Township Republican and Rogers ally.

“I…don’t think it’s realistic that we’re going to get the Democrats back to the table to negotiate a deal that makes the kind of dramatic changes to our state budget we would have to make,” Hall told Bridge Michigan in a Thursday interview. “I certainly don’t want to pause all the great work we’re doing to fund our local roads.”

An immediate federal gas tax holiday seems unlikely too: The US House is not expected to meet again until after the Nov. 3 election.

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Gas prices have skyrocketed across the country amid the United States’ ongoing war with Iran. Limited access to a crucial strait through which roughly a fifth of the world’s crude oil passes and recent attacks on a key Saudi Arabian pipeline have further escalated the impact.

As of Thursday, Michigan’s $4.75-per-gallon average for gas was the 10th highest price in the country and more than 30 cents higher than the national average of $4.43, according to a AAA analysis. Some gas stations in metro Detroit have crossed the $5 per gallon threshold.

Responding to Rogers’ proposal, Democratic rival Abdul El-Sayed said taxes aren’t causing recent price spikes. “It’s the insane war your boss Donald Trump got us into,” he said on social media.

“I am the only candidate in this race running to bring down costs for Michiganders and will fight to make life more affordable for Michigan families in the US Senate,” El-Sayed added in a statement.

In calling for the gas tax holidays, Rogers criticized recent state-level changes, characterizing what state House Republicans had called a tax shift as a tax hike.

Lawmakers “raised our gas tax from 31 cents on the gallon to 51,” Rogers said in a statement, calling it “unconscionable.” He blamed “Lansing Democrats,” but Republicans had sponsored and helped approve the law.

Michigan House Speaker Matt Hall, R-Richland Township.(Annie Barker for Bridge Michigan)

“Working families need leaders who will bring the costs of energy down, not ones who will make their lives less affordable,” Rogers added.

His campaign did not immediately respond to follow-up questions on whether he endorses a specific time frame for the suspension or any means of backfilling costs of road repairs normally covered by gas taxes.

Hall, Michigan’s GOP House speaker, told Bridge that while there are other examples of Democrats supporting higher gas taxes — including Gov. Gretchen Whitmer’s failed call for a 45-cent increase in her first term — last year’s deal was not one of those situations.

“I like Mike Rogers, and I’m supporting Mike Rogers. I think he’s going to be a great U.S. senator. But I don’t agree with that characterization,” he said. “If we hadn’t made that deal, people would be paying more now.”

Michigan’s gas tax

Gas is currently taxed at 52.4 cents per gallon in Michigan, where lawmakers last year exempted fuel purchases from the state sales tax but raised the gas tax by an equivalent amount to free up more funding for road repairs.

The shift was initially proposed by House Republicans, who advocated for its inclusion in a bipartisan roads deal. The chamber’s final vote on the law was 98-11.

gas prices — As of Thursday, Michigan’s $4.75-per-gallon average for gas was the 10th highest price in the country. At one Speedway station in Redford on Thursday, unleaded gasoline cost $4.69 per gallon.
(Jordyn Hermani/Bridge Michigan)

According to the Department of Treasury, 98% of all funds generated at the pump now go back to state and local road agencies for construction, maintenance and upkeep.

Hall said last year’s deal was designed to be revenue-neutral and makes the state tax a fixed rate instead of a percentage of the overall cost, arguing residents would likely be paying more overall if the change hadn’t happened.

While some states, including Utah, Indiana and Georgia, either fully or partially suspended their taxes on fuel earlier this year, Whitmer and other Michigan officials have resisted calls to do the same, warning a state gas tax suspension would mean substantially less funding for road repairs.

Legislative Republicans in 2022 led a push to temporarily suspend gas taxes amid even higher prices that year, when unleaded gas in Michigan hit a record $5.22 in June, according to AAA.

Whitmer vetoed the measure, however, citing concerns it wouldn’t immediately help people financially and would come at the detriment of local and state road repairs. The six-month gas tax holiday was projected to save motorists — but cost the state — about $725 million.

A federal pause?

The idea of a federal gas tax holiday has gained some traction in recent months, though a GOP-led effort in Congress to suspend the gas tax until 2027 is facing significant roadblocks in the US House.

The chamber adjourned Wednesday and is not expected to reconvene until after the Nov. 3 election, meaning lawmakers will likely not have a chance to consider the kind of gas tax holiday Rogers is proposing until after his race is decided.

A pair of Senate Democrats in March introduced a bill to suspend the federal 18.4-cent per gallon gas tax through Oct. 1, though that legislation never advanced. The federal gas tax rate hasn’t changed since 1993.

Proponents have argued that a pause would temporarily ease the burden of high gas prices, though critics are concerned about depleting the federal Highway Trust Fund, which is funded largely by federal gas taxes.

A spokesperson for Whitmer said in May that she’d support a federal gas tax holiday “to give drivers some relief from these sky-high prices.”

The month prior, the governor also issued an executive order allowing several counties to sell higher vapor pressure gasoline in summer, which is less expensive but not great for the environment, especially during warmer weather.