162 search results for "gas tax"

Cronyism, Elections, Michigan, Opinion, Proposal 15-1, Rent Seeking, Taxes

Rep. Franz Explains the Disaster That is Proposal 1

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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.

STOP-167And, 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.

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Cronyism, Elections, Humor in Michigan, Michigan, Michigan Politics, Opinion, Proposal 15-1, Taxes

MLive Endorses Proposal 1 – Epic Math Fail or Outright Mendacity?

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Journalists Bravely Display Their Mathematical Deficit, or......?

fuzzymath
The MLive Media Group Editorial Board endorsed Proposal 2015-01 this morning. The endorsement was no real surprise, given the blizzard of slanted reporting MLive has been posting on Proposal 1 over the last 30 days. The real surprise here was the shoddy math cited in the endorsement:

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.

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Elections, Michigan, Michigan Politics, Proposal 15-1, Taxes

The Disaster That is Proposal 1

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Sales Tax Retention on Off-Road Fuel Will Trigger Pandemonium in Michigan's Fuel Distribution Network

ORFUTU-nerd-RM

Part II

As Proposal 2015-01 stands now, ORV operators, snowmobilers, boaters, lawn mowers, generator users, and others purchasing non road use fuels from gas stations will be in violation of PA 167 of 1933, the Michigan sales tax act. The way PA 167 of 1933 is worded, compliance is primarily the responsibility the fuel retailer. However those who, for whatever reason, escape paying the sales tax become liable for the Michigan use tax under PA 94 of 1937. This includes tourists who trailer in fueled boats from out of state. The ‘Amazon tax’ returns with a vengeance in a new guise.

Barring further convoluted legislative action, on October 1st Michigan gas stations will have to collect the 7% sales tax on gasoline and diesel fuel sold for any purpose other than propelling a vehicle “used to operate a motor vehicle on the public roads or highways of this state”. Seems simple enough given the electronic calculation capabilities of most modern gas pumps, right? Just push a button and the sales price increases by 7%.

Wrong.

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Cronyism, Elections, Michigan, Michigan Politics, Proposal 15-1, Taxes

The Disaster That is Proposal 1

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Sales Tax Retention on Off-Road Fuel Will Trigger Pandemonium in Michigan's Fuel Distribution Network

tall-sign
Part I

Let’s walk through the numbers and consequences of the most disastrous aspect of Proposal 2015-01: the retention of the sales tax on fuels used almost everywhere but on the roads. Most disastrous because this will be enshrined in our Constitution if Proposal 2015-01 passes. No act of our Legislature or sleight of hand by our Governor can correct the Michigan Constitution if Proposal 2015-01 passes. They can only decide to impose astronomical costs on the petroleum distribution network, create a lot of new criminals, spawn a black market in fuels, forego sales tax revenues, or some combination thereof. The Michigan Constitution gets its first intractable dilemma.

HCJR UU contains the actual language amending the Michigan Constitution. Sales and use tax rates go from 6% to 7%, and the sales tax is no longer permitted on “gasoline or diesel fuel used to operate a motor vehicle on the public roads or highways of this state”. So the plain language of HCJR UU authorizes continued sales tax collection on all gasoline and diesel oil which is not used to operate a motor vehicle on the public roads or highways of this state, at the new 7% rate.

This 7% ‘ORV’ fuel sales tax will be over and above the motor vehicle fuel tax, which continues to be applied to recreational off-road vehicle and marine fuels as a ‘privilege tax’ under PA 451 of 1994. To make things even more confusing for fuel suppliers and consumers, there will be a third category of fuel subject to the sales tax, but not the motor vehicle or privilege tax: fuel used industrially, for construction, for farming, for lawn care, generators, and other miscellaneous purposes.

Less noticed, the 7% sales tax is also authorized on fuels other than gasoline and diesel oil used to operate vehicles on the public roads or highways of this state. This is quite a surprise since PA 468 of 2014, the motor vehicles fuels tax law of the road tax package, goes to great lengths to bring alternate transportation fuels such as liquid or compressed natural gas and lighter alternative petroleum products (LPG, propane, etc.) into the general road fuels tax regimen. This is significant; the U.S. Energy Information Agency estimates that these alternate transportation fuels currently account for about 6% of ground vehicle propulsion on the public roads in 2009 and their usage is increasing sharply. The sales tax liability on these ‘green fuels’ will put them at a serious economic disadvantage to gasoline and diesel fuel. But this did not deter the Sierra Club and their fellow environmental wackos from endorsing Proposal 2015-01. David Holtz and the Michigan Sierra Club board would appear to have a ‘Common Core’ reading comprehension level.

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Cronyism, Elections, Michigan, Michigan Politics, Opinion, Proposal 15-1, Taxes

Herding

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Taking away the options, our elected class leaves us with no choice, right?

sheep-brandedSo, do you say “Baaaa” or “Moooo” on Wednesday May 6th?

That is, if you intend on voting for proposal 15-1.  And all the animal sounds notwithstanding, will anyone reading this accept the fact that they have pretty much been ‘herded’ like common farm critters if they decide to support the measure?

Consider how ‘heeling’ with a border collie is done.  By taking away the options for movement, a nip at the herded animal’s feet, and the dog  manipulates the path of the animal so that it pursues the desired direction.  When one goes astray, the new direction is blocked ensuring a return to the planned route.

When looking at proposal 15-1, it should not have gone unnoticed that the scheduling of the proposal’s vote is at the time when the roads are at their peak ‘crap’ condition.  The end of winter and at a time when patching work by the local road commission has not completely caught up with the seasonal destruction.

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Cronyism, Elections, Michigan, Proposal 15-1, Rent Seeking, Taxes

Spring is Beginning to Blossom in the Mitten

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Here comes the Boom!

TV-ADSIt’s been a relatively quite week at the gas pump, based on the national average holding at $2.426/gal versus last Monday, but while some motorists are enjoying mild declines, the Great Lakes has taken over what the West Coast saw weeks ago.

Prices are soaring throughout the Great Lakes with big spikes most prevalent in Illinois, where prices have increased an average 29c/gal versus last week. Michigan trails, having risen 25c/gal in a week, while Indiana, Wisconsin, and Ohio have risen 15c, 13c and 12c, respectively. Meanwhile, Kentucky saw an increase of 10c/gal.

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Remember, that’s why: Tis not 1 percentage point – it is a 16.7% Sales Tax Hike – 30% Registration Fee Hike – ultimately a 200% Tax Hike on Fuels

Oh! Ya, and with this “feature“.

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Elections, Humor in Michigan, Michigan, Opinion, Proposal 15-1, Rent Seeking, Taxes

Bejebus! Our Proposal 1 inbox is Smoking Hot This Morning

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A reader sends this juicy morsel from Paul Egan a few days ago.

STOP-167■ Allow cities whose transit services carry more than 10 million passengers per year, which includes Detroit, to spend up to 20% of its share of Michigan Transportation Fund money on transit, rather than city roads and streets.

■ Add language to allow the Michigan Transportation Fund to receive money from any source, not just fuel taxes and vehicle registration fees.

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GasTaxRegistrationFreesHikeCan one say Regional Transit Authority? Us well-informed RightMi.com readers sure can. Matter of fact, there is a Tag for that, and we here will allow the missed it by 4% registration fee hike to remain in this Tag, here.

But, back to that RTA… isn’t it nice of the movers and shakers within SEMCOG to provide means of special assessments and property tax hikes by statute for the ongoing bailout of Wayne County? Gee, all of Michigan should thank, slick Rick and Lt. Calley, for that, no?

OABTW, did I happen to mention that I had the opportunity to shake hands with our beloved Republican governor on St. Patty’s Day? True story.

I was at a local convenience store reaching for my wallet and accidentally intercepted Snyder’s hand.
CamachoSnyderBecause every president really needs a *Smart Guy™*…

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Cronyism, Elections, Michigan, Opinion, Proposal 15-1, Rent Seeking, Taxes

Vote yes or you all will D-I-E!!!!!!!!!!!!!!

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That’s the latest narrative for unaccountable MDOT from “Vote Yes” spokesperson governor Snyder.

GasTaxRegistrationFreesHikeGov. Rick Snyder joined Wayne County Executive Warren Evans [see here], Washtenaw County Sheriff John Clayton, Brad Williams of the Detroit Regional Chamber [these guys] and others for a morning press conference at a fire station in Dearborn [allah shazam].

Snyder, holding chunks of a broken road and bridge, reinforced the public safety message that the “Safe Roads Yes” campaign is emphasizing ahead of the May 5 vote.

“Can you imagine one of these coming through your windshield?” the governor said, going on to state that 14 percent of the bridges in Metro Detroit have plywood installed beneath them to catch falling concrete. “Your life is in jeopardy.”

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McLellan_Mac_Cen_Vote_Yes_man-behind-the-scenePathetic. You know what? I’m getting a little sick of the scare tactic bullsh!t coming from Snyder to justify his big spending, and crony contractor friends. Even a party bootlicker like Tom Shields recognizes this is a major backfire, however, milquetoast Willy’s protégé hailing from Ann Arbor, is tone deaf on the matter and I strongly encourage Snyder, along with his Lt. toad to carry on with this “we’re all gonna dieeeeeee” meme. I mean, what’s better than having tax-hike loving Virg Bernero in Prop 1’s corner?

STOP-167Perhaps, commercials showcasing a school bus with a disgruntled AFSCME driver in them? Maybe, some mom who maintains her own life in the very same fashion that MDOT maintains theirs and the squandering of our tax dollars while lying about it?

Remember folks, Prop 1 is a $2,000,000,000 hike with annual tax hike ratchet mechanism on fuel with a whole lotta public sector union payola (everywhere) and fraud embedded into it.

Stop-100Is that how our state constitution should be changed?

I think not.

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Michigan Politics

QUANTUM OF SOLACE. TIME TO DO YOUR JOB AND STOP BUILDING POLITICAL CAPITAL FOR THE FUTURE.

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“If you board the wrong train, it is no use running along the corridor in the other direction.”
Dietrich Bonhoeffer

This is the second time that Cindy Gamrat (at the behest of Todd Courser?) has considered throwing her hat in the ring for RNC Committeewoman. This is also the second time she has made an attempt to Undermine the TP/Liberty movement this month. An apparent pattern is beginning to emerge, one that many, myself included, were blinded to by Friendship and possibly misplaced loyalty.

Many of us Know that Cindy Gamrat asked Both Cindy Duran and Angela Rigas, to effectively cancel their house races, and Commit their Campaign resources and volunteers to her fight. (Were there others asked to do so?) Angela Rigas and Cindy Duran were both taking on sitting incumbents. With the recent revelations of the endorsement of Ronna last week, and the propping up of Calley at the Pow Wow, one could easily speculate on the motives of such a request, the origination of the requests, and who would benefit the most if either had dropped out? Many realize that while Pscholka and Lyons both still won, neither is in a position of leadership in the house today, and much of the credit for that goes to the diminishing of their power due to being challenged. A secondary thought is the arrogance involved in the concept that a candidate has the “Right” to commit the time, energy, and resources of volunteers, to others.

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Cronyism, Elections, Michigan, Michigan Politics, Proposal 15-1

It Only Gets Worse

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Taxes that increase every year to keep up with inflation.

STOP-167Say What?

We have used the 16.7% tax increase in the stop sign logo, (at the right) and will continue to do so.  However, it is hardly a complete look at the tax implications if proposal 15-1 were to pass. We are attempting to find all the ways in which our prior legislative session gave us the shaft, including train to nowhere projects, redistribution of wealth, and the fuel tax replacement components.

Folks might actually be aware of the replacement fuel tax and that it will be more than what the was tax was before. Presumably, it simply replaces the sales tax that has been collected on fuel, that does not go toward roads.  However, when one looks at the analysis done by the House Fiscal Agency, there is a paragraph that explains the mechanism accurately; and in particular, a line at the end of that paragraph points out an easily missed point.

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