Grand Rapids, Mich. — Business leaders across Michigan are expressing concerns over Governor Gretchen Whitmer’s new proposal to address the state’s aging roads and infrastructure. Announced this week, the $3 billion plan is designed to replace the road bonding initiative approved in 2020, which is set to expire soon.
The proposed funding model would rely on new taxes levied on corporations and wholesale marijuana sales, alongside a promise that every cent collected from the state’s gas tax would be dedicated to transportation infrastructure. According to the governor’s office, this could generate as much as $1.2 billion for road repairs. Additionally, $1 billion is earmarked to support local communities in fixing their roads.
Since taking office, Whitmer has made road repairs a focal point of her administration, with the state spending billions of dollars to improve infrastructure. However, Muskegon resident and truck driver Adam Hartman, who drives across Michigan daily, remains unimpressed with the visible progress.
“Honestly, I’d say the roads feel about the same,” Hartman remarked. “It seems like they’ve repaved the same highways every few years, but a lot of back roads are still in rough shape.”
Hartman highlighted his experience driving through Muskegon Heights, where he claims large potholes—some up to four feet wide—remain a persistent issue. “It feels like certain areas get more attention, where there’s money. Other areas, like Muskegon Heights, are just left behind,” he said.
Whitmer’s office contends that under her leadership, over 23,000 lane miles of roads and 1,600 bridges have been repaired. Despite these claims, the administration’s new proposal has raised questions about funding and its impact on businesses and consumers.
The marijuana wholesale tax is one of the more controversial elements of the plan. While the exact rate is yet to be determined, Whitmer’s office estimates the new tax will generate $470 million for road repairs.
Casey Kornoelje, the owner of Pharmhouse Wellness, a Grand Rapids dispensary, voiced concerns over the added burden on small businesses. He acknowledged that large, corporate dispensaries may absorb the tax, but for smaller operations like his, it could be devastating. “Cannabis is already one of the most heavily taxed industries in the country,” Kornoelje said. “Another tax doesn’t seem like the right solution.”
The plan also includes a proposal for corporations to contribute an estimated $1.6 billion for road repairs. However, the Grand Rapids Area Chamber of Commerce is worried that the tax burden on businesses—particularly small ones—could have unintended consequences.
Joshua Lunger, vice president of government affairs for the Chamber, expressed concern that raising corporate taxes could lead to higher costs for consumers, especially since 90% of businesses that pay Michigan’s corporate income tax employ fewer than 100 people.
“While we agree that fixing the roads is essential, the potential impact on businesses and consumers is a significant concern,” Lunger said.
In defense of the corporate tax proposals, Whitmer’s office emphasized that the new taxes would target large corporations and tech giants like Amazon, X (formerly Twitter), Facebook, and TikTok. These companies, the governor’s office argues, profit from Michigan’s infrastructure and contribute to road wear and tear through heavy trucking operations that damage roads and bridges.
“Michigan’s laws haven’t been updated to reflect the growing influence of Big Tech industries, which use our infrastructure without bearing the full costs of maintaining it,” Whitmer’s office stated in a release.
As the debate continues, Michigan’s road repair plan remains a focal point of state politics, with both business leaders and residents closely watching how it will unfold.
