3 The Michigan proposal.

• Position: STATELINE - Brief article

Michigan lawmakers recently passed an innovative package of bills to help fund transportation projects. The legislation will increase the earned income tax credit for low-income families if voters approve a 1 percent sales tax increase in the May election. If they do, other changes will kick in, including replacing the current fixed gas tax with an indexed rate on the wholesale price of fuel. In its entirety, Proposition 1 is expected to raise $1.2 billion for roads, $300 million for K-12 education, $100 million for public transit and $95 million for local governments. Some critics claim the plan is a tax hike on the middle class in disguise. Others charge legislators with...