Republican Speaker of the House Matt Hall warned of serious consequences if Senate Majority Leader Winnie Brinks can't secure enough votes for the proposed marijuana tax for roads.
- The proposed 24% wholesale tax on marijuana could generate $420 million annually for road projects.
- Speaker Matt Hall warned that a government shutdown could result if the tax measure fails.
- Cannabis business owners and some lawmakers worry the tax could strengthen the black market.
WATCH: Michigan's proposed marijuana tax faces opposition amid budget negotiations
When asked what would happen if Senate Majority Leader Winnie Brinks couldn't get enough votes for the marijuana tax proposal, Speaker Hall was direct about the stakes.
"Well then, the government would shut down," Hall said.
The proposed 24% wholesale tax on marijuana could bring the state $420 million a year—money going directly to funding road projects.
"24%, we thought, was a better solution to find that balance between what will raise the revenue needed for roads and what will not decimate the industry," Hall said.
I spoke with a cannabis business owner about what the tax could mean for the industry.
"I think by raising the taxes in the real market, all you're doing is pushing people back into the black market," the business owner said.
Democratic State Senator Jeff Irwin agrees and plans to vote against the bill.
"This idea to add a new 24% tax on top of it is going to kill jobs, reduce revenue to our local communities, and it's going to drive more of this business underground," Irwin said.
I will continue to follow the budget process and what it means for our neighbors.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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