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House Speaker proposes raising gas taxes to help fund roads

LANSING, MI (AP)--   Republican House Speaker Kevin Cotter is proposing a plan for increasing the long-term funding available to repair Michigan's roads. Cotter's plan comes eight days after state voters

overwhelmingly defeated a road tax referendum.

Cotter told The Associated Press his plan would raise more than $1 billion for roads by tapping into restricted funds that now support economic development programs, allocating a portion of money from projected growth in the general fund, and eliminating the Earned Income Tax Credit for low-income families.

The plan would also raise the diesel tax to 19 cents to match the gas tax, then index both to inflation, and levy a user fee on hybrid, electric and other alternative-fuel vehicles.

But it may face opposition from minority Democrats, and potentially the Republican administration and GOP-led Senate.