The Republican leaders in the Michigan House and Senate are slow to jump on board with a plan to do away with a tax credit auto insurance companies have received the last two years. Representative Al Pscholka is heading up the effort to ditch the $80 million tax credit, calling it “the biggest piece of corportate welfare I’ve seen in a long time.” The Stevensville Republican adds, “this is an $80 million handout of General Fund money.”
House Speaker Kevin Cotter isn’t seeing things Pscholka’s way just yet. He calls it a “big issue,” and says he needs to understand why the credit was passed in the first place. Cotter adds “there’s no reason to act right now.” Senate Majority Leader Arlan Meekhof isn’t opposed to Pscholka’s call to repeal the credit, but says he’s “not interested in going back” and making the cut retroactive.
Pscholka is undaunted by the pushback from leadership and contends the tax credit was flawed. “There was no rebate, there was no rollback of rates,” he said. “I keep looking in my mailbox, and I can’t find it. I’ve asked about it. They told me ‘Oh gee, representative, maybe your rates won’t go up higher, later.'”
He wants the money saved to go towards getting Detroit Public Schools out of debt. Car insurance companies say they’ll have to raise rates if the state gets rid of the tax credit. Pscholka contends the tax credit was an accident and insurance companies failed to pass the savings to their customers.
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