Wait until you discover zero sales tax dollars goes to roads, and the Education Fund doesn’t mean money going to schools. Enjoy.
Think those additional costs on shipping goods to stores aren’t going to be passed along to you on top of the direct personal hit to the wallet? Better think again about that.
Thanks for voting against this convoluted, Snyder invented perpetual tax hike during the lame duck, Rep. Franz. Also, thanks for being the only Rep. to address this, and the fact there are multiple “Plan B’s” in the works.
And, to you out there who are appalled that Lansing had the audacity to foist this abomination onto us, you better get off your asses and Vote NO on May 5, because the news outlet editorial page propagandists pushing Snyder’s agenda is already ramping up their “it’s all we got” meme as noted here and here.
Remember, requirement is 50% + 1 stinking vote is all it takes to entrench this mess into our constitution.
If you currently pay $100 per month in sales tax, which is the average for median income households in Michigan, you’ll pay an extra $1 per month. Because the sales tax is regressive — it falls disproportionately on the poor — Proposal 1 evens the playing field by expanding the Earned Income Tax Credit, which was cut in 2011.
The fuel tax changes will result in an additional 2 to 10 cents per gallon, depending on gas prices. Some of these costs will surely be offset by reduced damage to vehicles as the roads are improved.
Governor Snyder’s FY 2015 Executive Budget projects that Michigan’s current 6% sales tax will collect $ 7.89 billion in FY 2015 on $ 131.5 billion in taxable products. This is $ 797 per year, per Michigan resident. The U.S. Census says that the average Michigan household is composed of 2.53 persons. Thus the current 6% sales tax is projected to collect $ 2,016 per household in FY 2015, or $ 168 per household, per month. Not $ 100 per month.
Looking at FY 2015 as if Proposal 2015-01 was in effect, the 7% sales tax would collect $ 8.5 billion on $ 121 billion in taxable products. Keep in mind that road fuel will no longer be subject to the sales tax, so we have to back out S 10.2 billion in formerly taxable fuel sales on just over 4 billion gallons in road fuel. This is $ 855 per year, per person. Thus the proposed 7 % sales tax would collect $ 2,165 per household in FY 2015, or $ 180 per household, per month.
So the difference is $ 12 per month, per Michigan household. Not MLive’s $ 1 per month fantasy factoid.