115 search results for "sales tax"

Cronyism, Michigan, Michigan Politics, Opinion, Philosophy, Proposal 15-1

Patton and Rommel Agree

by Kevin Rex Heine • April 17, 2015 • 13 Comments

The current battle is to simply stop the inertia of decline, but we need to follow through.

“Don’t fight a battle if you don’t gain anything by winning.” There seems to be some dispute as to whether this was actually said by either General George Patton or Field Marshall Erwin Rommel, but everyone seems to agree that one of them said it. Whether we’re discussing a military battlefield or a political one, it’s pretty sound advice either way, often more commonly worded as, “be selective about the fights you pick.” A logical corollary of this maxim is that if you’re going to accomplish anything, then (a) you should have a realistic expectation of what can be accomplished, and (b) know why winning this particular battle will advance the larger goal. And, as any strategist or tactician worth the title will advise, the smart thing to do is to already have a plan for follow-up in place . . . because you’re going to need one should you actually win.

This is where Michigan’s constitutionalist insurgency has done a marvelous job of dropping the ball post-2010, and as a result now has a task that’s four times harder than it needed to be. The upside is that this fight is still winnable, if we stay focused on a realistic expectation of what we’ll actually accomplish by winning it.

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

So… Safe Roads, yes?

by Corinthian Scales • April 13, 2015 • 4 Comments

Michigan traffic deaths fall 8% in ’14

Even the helmet-less motorcyclists strawman numbers are down. So much for the alleged ‘untouchable’ $18,000,000,000.00 *fund* that Lansing politicians are protecting for their insurance industry lobbyist friends, huh? It’s on the table for discussion now, governor Snyder.

You also have noticed that Snyder’s Martin Waymire, and McLellen is now pushing the repair cost meme, right?

Dave Waymire, a spokesman for the Safe Roads Yes ballot committee campaigning for the measure’s passage, said most residents do not claim itemized deductions on federal returns. Crummy roads cost drivers an extra $539 a year in vehicle operating costs [Snyder’s people really cannot keep their figures straight, can they?] due to repairs, tire wear and increased fuel consumption, according to the proposal’s proponents who cite a report from the transportation research group TRIP [another quasi-governmental organization like PASER – that’s a Fact].

“Many Michigan residents today pay a hidden tax for our poor roads by virtue of [incompetency bordering criminal intent] the high cost of repairs that are incurred due to potholes, extra wear and tear on their vehicles,” Waymire said. “If you consider the hidden tax [or the BIGGER hidden tax on top of the 16.7% hike that is Proposal 1], which our opponents refuse to acknowledge, this is a substantial [Zero] savings for Michigan.”

Another “unadvertised feature” of the plan is that taxes on fuel sold for boats, off-road vehicles and lawnmowers would rise significantly because the fuel would not be exempt from the sales tax, Anderson said. The new 7 percent sales tax [hike of 16.7%] would only be removed from fuel used to operate motor vehicles on public roads, raising compliance issues [see Here and Here] since the vast majority of fuel is sold by gas stations without regard to whether someone is filling up a car, boat or gas can, according to the nonpartisan Citizens Research Council of Michigan.

“Some promise it will be fixed. It’s not fixed now, so we included it,” said Anderson. He said he is not a “fan” of Proposal 1 but when his research company crunches numbers, “we do them straight.”

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You do realize that you are being lied to by Snyder’s cabal of *safe roads yes* pushers, right?

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

Proposal 1: Passing Along Hidden Costs to the Consumer

by Corinthian Scales • April 9, 2015 • 3 Comments

Uh-oh. A major red flag for consumers should be indifference to us facing what could be the second highest sales tax in the nation on May 6.

As part of Proposal 1, the May 5 ballot issue that would raise the state’s sales tax [16.7%] from 6 percent to 7 percent, commercial truck registration fees would rise between $100 and $1,000 per vehicle, depending on gross weight. The plan also would end a gradual reduction in registration fees — averaging $40 a year — granted on new passenger vehicles during the first three years of ownership [and loss of federal itemized tax deduction].

The higher fees for commercial trucks would immediately raise $50 million a year, while the fee change for new passenger vehicles eventually would raise an additional $125 million a year.

The extra fees on commercial carriers would be on top of a stiff diesel fuel tax hike also connected to the plan. Despite that, Michigan’s leading trucking association supports the governor’s roads proposal.

“We’re comfortable with the package, but we’re not out there waving the flag,” said Walter Heniritzi, executive director of the Michigan Trucking Association, which has represented motor carriers in the state since 1934.

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Truth be told, Mr. Heniritzi is a small lobby player in this matter so, his go with the flow mentality should be no surprise. He knows whatever is levied onto the trucking industry is passed along to the consumer. The big players will survive, and the smaller operations will go away or, be consumed by the big corporations as they have historically.

Think not? Well, let’s talk for a moment about Prop 1’s “stiff diesel fuel tax hike” for a moment, shall we?

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

Rep. Franz Explains the Disaster That is Proposal 1

by Corinthian Scales • April 2, 2015 • 8 Comments

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.

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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?

by 10x25MM • April 2, 2015 • 3 Comments

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

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

by 10x25MM • April 1, 2015 • 3 Comments

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

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

by 10x25MM • March 31, 2015 • 4 Comments

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

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

by Jason • March 30, 2015 • 0 Comments

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

So, 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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Conservative News, Elections, Michigan, Opinion, Philosophy, Proposal 15-1

Turkeys, Sausages, and Turd-Polishing

by Kevin Rex Heine • March 28, 2015 • 2 Comments

Will Proposal 15-1 become a bridge too far for the GoverNerd?

According to a colleague of mine, the power of government (at any level), over its law-abiding citizens, is directly derived from the taxation authority. Think about that for a moment or two. In a truly free society, the government has no means to control the behavior of its citizens who aren’t actual criminals, nor will those citizens tolerate any such action from their duly-elected public servants. And while the citizenry does indeed pay taxes – because even in a free society, the government still has the authority to tax – control of the taxation mechanism isn’t left to the arbitrary whims of government functionaries, and the true tax burden is plainly visible for all to see.

By that measure, it’s been at least five decades since Michigan was a truly free state. Since being gifted with an income-based taxation model, and a full-time legislative model, the state that was once the engine of freedom has progressively mutated into a socialist laboratory, at best a generation between now and whatever bankruptcy chapter awaits a nominally sovereign state collapsing into receivership. And in that regard, I don’t think it overly dramatic to suggest that this statewide special election to decide the fate of a legislative piece of sausage is similar to Gettysburg . . . if we don’t stop them here, then where will we ever be able to stop them at all?

The upside is that We the People received a bit of good news on this front yesterday, though how this’ll ultimately play out is still an open question.

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

Spring is Beginning to Blossom in the Mitten

by Corinthian Scales • March 26, 2015 • 0 Comments

Here comes the Boom!

It’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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