(LANSING) - State Senator Jonathan Lindsey has introduced legislation to eliminate the 24% wholesale tax on marijuana.
The tax was created during budget negotiations late last year.
Senate Bill 810 would repeal the new 24% wholesale tax and revert marijuana taxation to the structure set by the vote of the people.
Lindsey, a Republican from Coldwater, says he opposed the new tax increase, first and foremost, because it represents an unnecessary growth of government. Lansing's budget does not need to grow larger; lawmakers simply need better discipline. He says this tax will also damage Michigan businesses and lead to widespread job losses across the state, which are already being reported.
Lindsey also says he doesn't believe that in the long term this mechanism will generate the expected revenue, especially if sales go down as a result of the increased taxes or if legal challenges against the tax prevail.
The bill, according to Lindsey, is about reining in the government's constant attempt to get just a little bit more out of people. He says Lansing must realize that growing government by taxing businesses into oblivion has never been, and will never be, a way to encourage a healthy Michigan economy.
Lindsey says his bill has strong bipartisan support, with four Republican co-sponsors and three Democrat co-sponsors, and he only expects support to grow as the damage of this tax becomes more obvious.
The bill was referred to the Senate Committee on Government Operations.