Tag Archive for MLive

Conservative News, Cronyism, Democrats, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature, Philosophy, Rent Seeking, Republicans, Taxes

Lie of the Month: “We’re talking about introducing an entirely new industry to Michigan”

by 10x25MM • December 3, 2015 • 11 Comments

Pandora's Box Has Been Opened

Actually, no. There are at least 28 third party data centers already up and operating in Michigan. The House Fiscal Agency thinks there are 40, but didn’t specify them. None of these 28+ existing data centers required the tax breaks just reported out of the Michigan House Committee on Tax Policy to get up and running. But Switch SuperNAP does? Why?

The promoters of Switch SuperNAP’s tax break package launched their campaign back in November with a heavy emphasis on the ‘new industry’ angle. This whopper seems to have been originated by Switch’s spokesman Roger Martin:

“It is a tough issue,” Switch spokesman Roger Martin said. “There’s no question about it. We’re talking about introducing an entirely new industry to Michigan, something that is the future of this country and of this world. It’s a good, vigorous debate.”

Conservative News, Democrats, Detroit, Michigan, Michigan Politics, Proposal 15-1, Rent Seeking, Republicans, Taxes

When It Becomes Serious, You Have To Lie

by 10x25MM • April 22, 2015 • 2 Comments

TRIP Boosts Their Lies 109% to Get Your Vote

The proponents of Proposal 1 never envisaged the losing position they now occupy two weeks before the vote, so their media shills have resurrected the titillating lies projections of a road builders’ organization called TRIP to bolster their case. Here are the most visceral quotes from Michigan’s two largest newspapers, demonstrating their well-honed propaganda skills:

Detroit Free Press

“Michigan’s poor roads threaten to derail its economic recovery, according to a new report by a national transportation research group.”

“The report says that 38% of Michigan roads are now in poor condition, up from 23% in 2006. It also found that 45% were listed in fair condition and 17% were listed as good.”

“The report estimates that Michigan motorists pay an average of $686 in increased operating costs, including vehicle repairs, because of the state’s poor roads.”

Detroit News

“By 2025, the share of major roads in poor condition is projected to increase to 53 percent,” TRIP said in its report. “Keeping roads in good condition by performing minor maintenance is far more cost-effective than waiting until roads are in fair or poor condition when it becomes far more costly to make needed repairs.”

“According to TRIP, driving on rough roads costs Michigan motorists a total of $4.8 billion each year in the form of extra vehicle operating costs, representing an average cost of $686 annually per motorist.”

”That’s the conclusion of a report released Monday by TRIP, a Washington-based nonprofit organization that researches, evaluates and distributes information on surface transportation issues.

The Detroit Free Press only identified TRIP as “a national nonprofit transportation research group” in this pivotal story. They were a little more candid in a previous story, so they can’t claim not to know what TRIP is. The Detroit News identification of TRIP was every bit as dishonest. Only our ‘newer’ media is more truthful, if still not entirely accurate:

Mlive.com

“The annual TRIP study, conducted by a national research group funded by transportation industry interests, pegs the yearly cost at $686 per Michigan motorist.”

“TRIP findings have long been cited by road funding advocates, including Gov. Rick Snyder.”

TRIP obligingly released a raft of new lies in a series of press releases on Michigan roads at the Detroit Regional Chamber (a kindred IRS 501(c)(6) organization, more on this below the fold) on Monday. These stories are an update to TRIP’s January 2014 lies which we covered in January. The comparable examples of TRIP’s 2014 lies (since removed from the web) are:

An inadequate transportation system costs Michigan residents a total of $7.7 billion every year
Driving on rough roads costs Michigan motorists a total of $2.3 billion annually in extra vehicle operating costs
Driving on rough roads costs the average Detroit urban area motorist $536 annually in extra vehicle operating costs
Driving on rough roads costs the average Michigan motorist $357 annually in extra vehicle operating costs

TRIP’s 2015 report on Michigan annual excessive vehicle costs is a $ 2.5 billion (or $ 329 per motorist) increase above their 2014 lies projections. A 109% increase above their 2014 lies. Far beyond any assessment of the 2014 to 2015 deterioration of road & bridge conditions in Michigan – even the totally bogus PASER ratings. Since the $ 2.3 billion (or $ 357 per motorist) 2014 TRIP number didn’t move you to vote for Proposal 1, the new and improved $ 4.8 billion (or $ 686 per motorist) lie is expected to change your mind on Proposal 1. They think you are that dumb.

So is TRIP a “nonprofit transportation research organization”? Sounds like an independent, credible source – right? Do the adjectives ‘nonprofit’ and ‘research’ give you a high level of confidence in their pronouncements? Does ‘organization’ or ‘group’ give you the impression that hundreds of researchers are assessing road conditions across the country? Perhaps you should dig a little deeper than our lazy, lying media scribes.

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.