Lansing wants to raise Michigan's 33 cent (not 19) gas tax

If you look at the media and their love of taxes, and not know how it works, you could easily fall for their lie, damn lie, and statistics that the gas tax is 19 cents, and supposedly low. It's not 19cents. That's right. Michigan's gas tax is currently 33 cents.  It's not 19 cents. It's 33, and fluctuates as the price of gas moves. At $2.65 a gallon, which I last saw in Brighton, 33 cents goes to Lansing. That makes the gas tax 33 cents, regardless of any crap that comes from the media.

Lansing and the media always ignores, purposefully in their quest for high taxes and more government, that the gas tax is 33 cents. This is due to bipartisan big government individuals who both have an interested in taking more money from us. The republicans on this side, like Dick Ball and former state senator Ken Sikkema are a major problem and the cause of why we lost our majority in the house. Big government Republicanism is a failure, both on the federal and state level. Nowhere is it worse in Michigan, than on the gas tax.

From the Detroit News

Lansing -- Two state representatives have introduced bills in Lansing that call for an increase of the state tax and both gasoline and diesel fuel.The bills -- sponsored by Rep. Dick Ball, R-Bennington Township, and Pam Byrnes, D-Lyndon Township, call for raising the gas tax incrementally until motorists would eventually be paying 27 cents per gallon for both gasoline and diesel by Jan. 1, 2013. 
Currently, the gas tax is 19 cents per gallon and 15 cents per gallon for diesel.

The gas tax is not 19 cents per gallon. I will repeat that. The gas tax is not 19 cents a gallon. I will say that one more time so the cheap seats can hear it. THE GAS IS NOT 19 CENTS A GALLON! That's only part of the tax, and I will call it out every time I see it.
Final price $2.65.
Minus - 19 cents - $2.46
Other part of Michigan tax - 14 cents in sales tax.
Another 18.5 cents goes to the feds as well.
At $2.65 a gallon, 51.5 cents goes to big government.

The Lansing elite has been trying to push this crap down our throats for years. This is the worst kind of tax. It hits us every time at the pump. It hits us at the grocery story as we pay for more shipping costs. It raises everyone's expenses. Gas prices did tons of damage in 2007 and 2008 to this economy and was part of the straw that broke the camel's back. Here's just a small list:

• Transportation tax passes committee - December 2009
• Ken Sikkema pushes for gas tax - August 2009
• Mike Crane pushes for gas tax - June 2009
• Flint Journal - May 2009
• Peter Luke's one of several articles advocating for the gas tax - April 2009
• November 2008 - Lansing insiders
• Granholm and Gilbert - January 2008
• October 2007

Peter Luke is at it again with his scare tactics yesterday. Same thing that's been said for years.


This is all based on a false premise. The false premise is that only the gas tax can fund roads. Every single so called plan I have seen on that false premise. Every single advocacy for the tax is based on that. It's crap. I'm not going to rehash the arguments. I've done that about six times already and nothing has changed.

Everyone that votes for this tax or advocates for this tax needs to be tossed out of office faster than you can say Martha Coakley. I don't care which party. I don't care if the rep is a friend. Lansing needs to get the message one way or another, and maybe it will have to take some firings to do that.

The gas tax push is official

Here we go. The gas tax push was not a boy who cried wolf. The wolf is there, and it is a push of several bills. Peter Luke has the story. One correction to his story. The gas tax in Michigan is NOT 19 cents. I repeat. It is not 19 cents. It is about 31cents when you add sales tax.

From the Flint Journal

LANSING -- Lawmakers and road advocates began what will be a months-long push to raise $1.8 billion in higher gas tax and registration fees over the next half-decade that they say is required to keep Michigan roads in decent repair.


Under the 13-bill package partially introduced Thursday, the gas tax would effectively rise from 19 cents to a maximum of 34 cents per gallon over the next seven years. Registration fees for new cars would jump as much as 20 percent annually over the next five years. By 2014, the annual cost of registering a new $27,000 car purchased that year would be $265. The current fee is $136.

Higher-priced used car registrations would rise about 60 percent under the plan by 2014. The price of registering low-value used cars would remain about the same.

In a new local funding option, counties would be able to seek a voter-approved $25 annual fee on driver's licenses to pay for local road needs.

The package also includes legislation to encourage private transportation investment and authorizes the Michigan Department of Transportation to explore charging tolls in Michigan. It provides an additional $50 million annually for local public transportation.

The intent is to raise an additional $1.8 billion in new funding over time, but quickly generate enough cash to make sure Michigan doesn't forfeit some $2 billion in federal road funding through 2013, which the state currently lacks the money to match. Without that match, the $2 billion would fund road projects in other states.

Peter Varga, executive director of The Rapid transit system in Kent County, said that $2 billion has already been paid for, through federal fuel taxes paid by Michigan motorists. "Ironically, (that's) money that we already sent to Washington that would not be coming back. Think about that."

I posted on this issue several times in the past year, most recently on April 18 when Peter Luke was advocating for this. A lot of the numbers used from the budget were there.

These proposals for tax increases are even WORSE than the numbers I used, which was based on a nine cent increase on the gas tax. They want 15 cents increase per gallon. Of COURSE the sales tax isn't touched, and is ALWAYS ignored by the Lansing elite when they talk about the gas tax.

Keep in mind that this is all based on FALSE assumptions, that only gas taxes and resgistration taxes can pay for the roads.

One issue that isn't addressed is why Michigan roads suck compared to Indiana's? or Ohio's? I know the "freeze/thaws" are used as an excuse, but Indiana, Illinois, Ohio, Wisconsin and Minnesota all have freezes and thaws. All these states have storms and rains and snow.

Gas taxes for comparison, not counting the federal taxes.
Michigan - About 31 cents a gallon. ($2.40 gas)
Illinois - 32 cents a gallon
Indiana - 29 cents
Iowa - 22 cents
Minnesota - 26 cents
Ohio - 28 cents
Wisconsin - 33 cents

I haven't driven in Wisconsin, Iowa, or Minnesota, so I can't compare their roads. Ohio and Indiana roads are much better than Michigan's roads, despite slightly lower gas taxes. I don't know their registration fees, but it's a racket here.

The problem is that there is something shady in this state and I'd like to see the contractual agreements. Roads are built on the cheap around here. There's always repairs. There's always orange barrels out there. The roadbuilders are one of the more influential lobbyists out there. They want to build the roads on the cheap. If they do a good job, there's less work next year. Nothing needs to get fixed. So we use the cheap materials in Michigan, and turn this all into a makework project, the government can always run on fixing things, and their buddies get their government cheese. Instead of fixing that problem to begin with, it's the old "we need more taxes" which is the "only solution" even though we have one of the highest gas taxes in the country, currently over 30 cents a gallon.

Here's a newsflash to the Lansing elite. Most of the time, the so called "only" solution isn't the only one, and the "only" solution is even worse than doing nothing. Government screwed it up to begin with.

Build the roads right, and leave us alone. Any politician in this economy who supports a tax increase, especially on the worst one of them all, needs to get run out of town and out of politics forever.

Gas tax to increase in Michigan soon? (Side title - we're broke despite revenue increases)

This isn't the first time this issue has come up. The Lansing elite has been trying to shove this down our throats for years. The Gas Tax. Both parties haven't been great on this.

2007 - Hopgood and DeRoche push for gas tax

The usually sensible Michigan Chamber of Commerce pushed it in 07

The Granholm tax force in 08

Late 08, again

Now one the more influential columnists in Lansing is trying to stir this up again.
Peter Luke, columnist of Booth Newspapers (Ann Arbor News) is pushing for a gas tax for the roads. It once again relies on the false assumptions. The assumption among the elite in Lansing is that "only the gas tax can pay for roads." That's the number one assumption of ALL these pushes for the gas tax. I don't buy that. Assumption is the mother of all eff ups.

Judging from the opposition to socialist tax schemes by those who traveled over Michigan's collectivist road system to the Lansing "tea party," it just got harder to pass business-backed funding increases for transportation.

Lawmakers this week are expected to begin work on a hike in fuel taxes, last raised in 1997, and vehicle registration fees, sending them to Gov. Jennifer Granholm by summer.

Is this that same 50% registration increase that the task force wanted? As far as gas prices go, are they going to go up to $4.50 a gallon this summer, again? Is sales tax going to be collected on this? Take the money from another department. We can start with Dan Mulhern's staff, that new state police building, and corrections be keeping people in jail for smoking a doobie. In addition, do you trust state government enough to make sure that goes to roads? Or will they starve the roads for a bigger tax increase while repeating this same assumption over and over and over and over and over again.

Without those increases, Michigan's road-repair budget will soon be broke. And yet, billions are needed to keep one of the nation's most decrepit road systems in reasonably good shape.

Assume. It makes an ass of u and me.. This premis is ONLY true if the assumption is true. It does not have to be. Roads should be priority funding. Right now 6% of every gallon of gas goes not to roads. That 6% is the state sales tax, which goes on top of the original gas tax. We are taxed twice over on gasoline.

Too bad the crowd at the Capitol on Wednesday loudly booed any mention of a gas-tax increase. And that the Michigan Republican Party hastened to endorse them.

"It's time to send a strong unified message that Michigan residents and job providers cannot afford another tax hike," GOP chairman Ron Weiser said.

Republicans intend to run next year against income and business tax increases approved in 2007, even though no Democrat was defeated in 2008 for voting for them. GOP co-chairwoman Sharon Wise said the 2007 hike -- which prevented steep cuts in higher education, health care and aid to local governments -- was "taken" from Michigan families.

The revenues keep increasing to the state, and what have we gotten from them. Jack and you know what. These are Granholm's numbers. Budget Book

(Fiscal year)
1999 - 32,653,492,611 (Amount Spent - and Michigan has balanced budget, so revenues are close to that number)
Transportation - 2,631,185,388

2000 - 34,525,326,492
Transportation - 2,660,470,554

2001 - 37,277,724,042
Transportation - 2,775,245,805

2002 - 39,077,762,617
Transportation - 2,857,404,627

(Granholm takes office)

2003 - 39,297,181,602
Transportation - 2,858,865,148

2004 - 39,388,261,316
Transportation - 2,957,280,073

2005 - 40,375,490,414
Transportation - 2,920,553,025

2006 - 41,326,338,653
Transportation - 2,940,680,294

2007 - 41,945,183,846
Transportation - 2,779,953,122

2008 - 43,578,704,400 (Tax increase)
Transportation - 3,360,195,600

2009 - 44,834,397,200 (Executive recommendation)
Transportation - 3,424,465,500 (executive recommendation)

This keeps going up DESPITE tens of thousands of people leaving the state.

The tax protesters conveniently neglected to mention that Michigan's 4.35 percent income-tax rate is lower than it was under most of Republican Gov. John Engler's 12 years in office. Nor is it a GOP talking point.

Under the 2007 increase, a household with $50,000 in taxable income paid about $225 more in 2008 than under the 3.9 percent rate. But that is $25 less than they would have paid in 1999.

I don't give a damn if it is less than Engler's term. Again, false comparison. Many states don't have an income tax or a property tax. We have both, and a sales tax, and the MBT, etc. Secondly, the gross revenues keep increasing year in and year out. $5 Billion dollars more - 1/2 of the amount budgeted as "general fund", is sent to Lansing, than it was at the end of the Engler years. Thanks to Headlee, Michigan can not operate without a balanced budget. The fact is that the Granholm admin gets much more money than Engler ever did.

If Republicans consider that thievery, then a proposed $1.4 billion increase in gas taxes and registration fees -- $150 per vehicle when it's phased in -- would take no less from a two-car household.

About $60 (with my six year old truck) more to the government in registration fees. Approxminately 9 cents more (based on previous proposals) per gallon every time I go to the pump. If the raw price of gas is $1.81/$3.81 here in Michigan, and this passes, the real cost will be.
Wholesale price - $1.81 (3.81)
US gas tax - 18.4 cents - $2.00, $4.00
Sales Tax (applies to US tax and price - $2.12, $4.24
Michigan gas tax - $2.31, $4.43
Michigan gas tax increase - $2.40, $4.52

Before the gas tax, it would cost me about $46.20 (or $88.60) per fill up (about 20 gallons). After - $48.00.(or $90). Now I included the $4+ gas prices here because I expect to see them again this summer. These energy prices were the final knockout punch IMO in this economy. People saw these every day and had to budget for them. This was an extra $40 every fillup that people did not plan for or expect. That money had to come from somewhere. That lead to inflation. Gasoline prices - obvious. Food costs went up. Shipping. Business costs went up - shipping. Household bills increased. It just amazes me that government and these pundits want an increase on the worst possible tax around, AND that they assume (the mother of all @#%# ups), that is the only possible solution. It reminds me that the 1.4 trillion dollar bank bailouts (there are two of them) are the ONLY possible solution according to Bush, Obama, McCain, and the rest of the Washington elite.

And so the GOP has put its lawmakers in a box.

Business, labor and elected officials in both parties agree basic stewardship requires finding the cash to fix Michigan's infrastructure. And economic stimulus money provides only a temporary boost, through the 2010 construction season.

But the Michigan Republican Party has cemented an anti-tax stance that appeals to its most conservative, tea-bag-waving elements. That makes it tough for radical outfits like the Michigan Chamber of Commerce to persuade GOP lawmakers to join Granholm and Democrats in raising transportation taxes.

Spare me, Pete. I like the Chamber, but they have a different agenda this time. You see, one of their constituents is the Road Builders who want more money for contracts. I don't fault the Chamber for that stance. They have to represent their members.

And unless Republicans do that, Democrats vilified for the 2007 income tax hike are not going to stick their necks out again. GOP lawmakers already edgy about the issue apparently have to choose between their party and the economic good of their state. It's a choice they should not have to make.

They don't have to make that choice. That's what you people in Lansing don't understand. This whole push for a gas tax increase is based on this false assumption that only gas tax money can go to roads, and that it is the only solution, etc.

I'll tell you what. I'll support a compromise because I do think roads funding is important. Here's the compromise. No registration fee increases, end the sales tax for gasoline, and then increase the gas tax by 10 cents (and I won't even complain if it is 12 cents in this case). ALL of that money goes to roads and only to roads - period. That results in no increased costs for us with $2 a gallon gas, or a slight increase possibly if it is 12 cents at $2. That's my compromise plan.

As for the plan of 9 cents a gallon increase, and the 50% registration increase, and the keeping the 6% sales tax on gasoline - get the recall petitions ready for those who vote for that. You can quote me on that.