Keweenaw Report Your Source for Local News and Sports
The Republican leaders in the Michigan House and Michigan 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.
State Representative Al Pscholka, R-Stevensville, is running point on the plan to ditch the $80 million tax credit.
He calls the credit a handout and the biggest piece of corporate welfare he’s seen in a long time.
Pscholka says the insurance companies should have passed on savings from the credit to their customers, but didn’t.
But House Speaker Kevin Cotter, R-Mt. Pleasant, says doing away with the credit is a big change that he wants to take some time to think about. He also doesn’t want to rush the decision.
The Republican leader in the Michigan Senate, Arlan Meekhof, R-West Olive, is toeing a similar line.
The insurance companies say if the state does away with the credit then they’ll have to raise rates.
