Tag Archive for 16.7% sales tax hike

$ 70 Million More Down the Drain Every Year

Michigan Triples Down On The Most Abused Federal Program

Flushing-Money

The U.S. Government Accountability Office released its FY 2014 estimates of improper payments made by the Federal Government in testimony before the U.S. Senate’s Committee on Homeland Security and Government Affairs on Monday. The Improper Payments Information Act of 2002 and the Improper Payments Elimination and Recovery Act of 2010 require Federal Executive Branch agencies to estimate the levels of improper payments in all Federal programs. The GAO assembles this data and reports the levels of improper payments, along with recommendations to minimize such improper payments.

At the Federal level, all improper payments amounted to about $ 125 billion dollars in FY 2014. Even by casual Federal accounting standards this is breathtaking.  Three cents of every Federal Government dollar spent. Going through the GAO’s estimates by program, the Earned Income Tax Credit is at the top of the list by percentage of improper payments: 27.2 % of all EITC payments are improper. The GAO estimated FY 2014 improper EITC payments by the Federal Government alone amounted to $ 17.7 billion dollars. Other Federal programs burned more dollars, but none had the percentage rate of improper payments that the EITC has. Not even close.

The most obscure element of the tax increase package which Michigan voters will be asked to approve on May 5th is Senate Bill 847 of 2014. This bill is a $ 260 million annual increase in the State of Michigan’s version of the EITC. The EITC will increase from its current 6 %, to 20 %, of the Federal EITC credit allowed under Section 32 of the Internal Revenue Code. Currently, the Michigan EITC pays out about $ 80 million from the Michigan Treasury every year at the 6 % rate.

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Michigan Roads – How Bad?

paser-1You are about to be buried in pseudostatistics and factoids purporting to demonstrate just how bad Michigan roads are. We have already demonstrated that the TRIP vehicle maintenance factoids fabricated by a devious road contractors’ business league are a complete fraud.

Now State of Michigan government entities are unleashing a wave of propaganda intended to drive your vote on Proposal 2015-01. Two State of Michigan government entities have prepared campaign flyers on behalf of Proposal 15-1 using Michigander’s tax dollars: MDoT and the Transportation Asset Research Council (TAMC).

Both MDoT and TAMC have spent years preparing slick pamphlets decrying the sad condition of Michigan’s roads, citing PAvement Surface Evaluation and Rating (PASER) data collected by TAMC with MDoT and local road agency help. These pamphlets claim that 30 – 40 % of Michigan roads are in poor condition. But are they really?

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Pavlov’s Politicians

Reflex Conditioning Drives Uncontrolled Government Spending

Pavlovs PoliticianThe brilliant, Nobel Prize winning physiologist Ivan Petrovitch Pavlov demonstrated that you could condition a dog to salivate by sounding a metronome. All he had to do was sound the metronome when putting out food for his dogs. It did not take long for his dogs to associate the sound of the metronome with food.  Then he no longer even had to put food out to get the dogs to salivate; he only had to sound the metronome.

Today, inferior rank politicians have been conditioned to salivate when a financial grant is offered by superior rank politicians. The only problem with these grants of largess is that they always come with caveats, and usually require matching funds. These restrictions are a deliberate – and successful – effort to frustrate all efforts to manage government expenditures.

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It Only Gets Worse

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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Michigan Political Math: $ 1.2 Billion = $ 1.08 Billion

Mass Transit Skims $ 120 Million from Proposal 2015-01 Road Work Funds

Train Wreck ImageEver hear of the Michigan Comprehensive Transportation Fund? Ten cents of every Michigan fuel tax dollar gets diverted to this mass transportation slush fund.  It is only just behind the sales tax as a diversion of your current fuel tax dollars from Michigan’s roads.

All motor vehicle fuel taxes collected in the State of Michigan are first deposited into the Michigan Transportation Fund. Then MCL 247.660 (1)(f) (Public Act 51 of 1951) dictates that 10% of the funds deposited in the Michigan Transportation Fund be immediately transferred to the Comprehensive Transportation Fund. The amended version of MCL 247.660 you are being offered in Proposal 2015-01 has the very same section (1)(f), making the same 10% immediate diversion.

So the $ 1.2 billion that Proposal 2015-01 supporters are promising you for road work is actually only $ 1.08 billion.  Kirk T. Steudle, P.E. gets a whole new stash to maintain and expand his stable of rotting train cars, $ 120 million that cannot be spent on the roads by law.  $ 120 million that gets skimmed from the $ 1.2 billion you are being promised for the roads.  And no, it is not skimmed from the $ 800 million that Proposal 2015-01 dedicates to the Democratic base.

Now you now know how Michigan political math works in the age of Common Core.  Pay $ 2 billion for roads, get $ 1 billion in road work.

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Yet, Granholm’s Kirk Steudle Hasn’t Been Fired nor Jailed

The latest ongoing MDOT buffoonery from Auditor General, Doug Ringler.

dozer-money“Our review … identified 48 of 92 [52%] expired warranty projects that needed corrective action,” the report said. “As of June 30, 2014, 24 of the warranties had been expired for over one year without MDOT having addressed the corrective action.”

MDOT said it agrees with all six recommendations made by the auditor general and is taking action to improve its system of monitoring and enforcing warranties.

“By October 2015, MDOT, in working with the Department of Attorney General, will develop a procedure for non-responsive contractors that have been notified to perform warranty work,” the department said in part of its response to the audit.

But the auditor noted that similar issues were raised in an earlier audit, released in 2010, and at that time the department said it would “strengthen its procedures to assure the completion of inspections.”

MORE

Hmmm, something to hide here, Mr. Steudle? And, the AG is involved? Can one say like placing a fox to watch the hen house? I can, as they all, the AG, the MDOT Director, and MSP Director, sit on the same committee endorsing Snyder’s Democrat wooed Proposal 2015-1 better known as the $2,000,000,000 16.7% Sales Tax Hike with double taxation for off road agricultural and recreational fuels, 30% registration fee increase, and loss of IRS deduction – among other handouts to buy votes.

Bonus? Just like clockwork, it’s Norm partying in Tampa Shinkle and Dan Pero’s wife Colleen to Snyder’s rescue (No, seriously!). How about it, Rule of Law Ruth? Nah, not so much as a peep.
STOP-167
Shame on those who seldom follow the linked information here on RightMi.com, because we all are truly getting the government that’s deserved, and getting it good and hard.

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Video Of The Day – Special Interest Deals

"Oh Yeah .. You Did.."

Classic “vote No” television ad as the first salvo in the epic failure that will be Proposal 15-1

The original ‘grubering’ in Washington merely required the power hungry congress critters to stick the fork in the voters.  In this new catastrophic mess, it requires full participation in the self flagellation.

Indeed, effective ads need to mock the stupidity that are presented in the proposals appropriately.

This one does the job well enough.

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The Lawyer for the People

Two things here. When it comes to political expediency, AG “has referred all questions” Schuette, it becomes apparent that he’s in a Party money bundler‘s and the Nerd’s pocket. That’s right, “sit .. Stay .. now roll over .. good boy.”

The other is if it’s one who is in the big spending Democratic Party calling for tax hikes and bogus *transportation* funding, AG Schuette will fake having a pair in the name of rah-rah go Team R nonsense. However, if it’s AG Schuette’s teammates who call for a $2,000,000,000 constitutional amendment tax hike and bogus *transportation* funding? Nope. Not so much as a peep. I know, old story. Constitution schmonstitution. It’s all just doubleplusgood speak.

I will not tolerate companies that seek to take advantage of Michigan citizens and get rich on the backs of hard-working entrepreneurs through trickery and deception,” Schuette said in a statement.

How about Snyder’s government ran like a business? Trickery and deception? Does the busiest travel time of the year mean anything? Seriously, our AG needs to stop boring us with his ignoring taxpayer funded appointed bureaucrat propaganda crap and do his damn job. Oh, that’s right, Snyder appointed Etue to sit with the MDOT toad where they all rub elbows together with our AG.

Never mind.

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It’s not a Glitch – It’s a Feature!

It’s good to see the folks over at MCC finally catching up to our 10x25MM, here at RightMi.com.

Double Tax on Some Fuels is Problematic for $2 Billion May 5 Proposal

Money quote? “Murray [a JournoList-esque hack] replied that he could not respond by this report’s deadline. Calley’s office has yet to respond.”

allah Shazam! GasTaxRegistrationFreesHikeDon’t hold your breath, Mr. Spencer, as Lt. Lapdog appears preoccupied with a family *matter*. And, as J-man, in comments, points out another issue surrounding the Republican Party’s big spending, nanny statist, corporate Nerd, well, with regard to Ruth Johnson, any future political aspirations she may have had are toast.

The video below is the Prop 15-1 commercial with bona fides.

Remember, Boobus Michiganderus, that May 5 proposal is a constitutional amendment vote. There ain’t no coming back from that $2,000,000,000.00 per year tax hike.

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Another Glitch in the ‘Road’ Tax Package

Legislative Craftsmanship at its Finest

Crying CEO or managerA week ago we found out that the new road tax package vehicle registration fee system would end its Federal tax deductibility.  Now Gongwer News Service is reporting another glitch, this time in the gasoline sales tax provisions of the road tax package:

Fix Planned to Correct Sales Tax Problem in Roads Plan

The administration of Governor Rick Snyder will seek legislation to correct a potential problem in the road funding plan that as written would lift the sales tax off of gasoline only for motor vehicles, but not for boats, snowmobiles and other non-road purposes like generators and gasoline-powered equipment.

As currently constructed, that would create a mess for retailers who theoretically would have to determine whether or not to charge the sales tax and even ask customers filling up a gasoline can what the intended use of the purchase is. The Citizens Research Council of Michigan, as part of a broad analysis it is conducting on the road funding plan, noted the quirk and provided the information to Gongwer News Service.

It will be interesting to see how Governor Snyder fixes this.  Purchasing gasoline for your boat or ORV could become a really entertaining bureaucratic exercise. Ready for the ‘Gasoline Police’? Think of the new forms to be filled out.

CRCoM is a collection of the usual corporate interests orbiting Michigan government. Not certain why they would have ratted out this bungle to Gongwer, but it does suggest a certain degree of unease among the establishment.

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