I’ve advocated for a tax increase to fund road repairs, and Whitmer reportedly will call for a 45 cents hike in the fuel tax. That will be painful for motorists, but necessary. Michigan has neglected its infrastructure for so long that there’s no painless fix. The hike will give Michigan the highest per-gallon fuel costs in the Midwest, but we have to do it.
As for the rest of this nincompoop’s idle drool about legacy costs, Proposal A, education and other adult age socialism, well, that’s what happens when local leaders cater to public sector unions for endorsements to the offices they sought, of which, the much ballyhooed Freedom-To-Work Act never even came close to addressing.
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.
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 peoplereally 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.”
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.
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?
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.
A reader sends this juicy morsel from Paul Egan a few days ago.
■ 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.
Can 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. Because every president really needs a *Smart Guy™*…
Gov. 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.”
“Fitch downgraded $203 million in building authority bonds, $186 million in limited general obligation bonds and $51 million in stadium refunding bonds. … jail boondoggle that wasted $130 million and counting.
Wayne County has a structural debt of $50 million and $40 million more is needed each year to bring its pension system back – the underfunding accounts for about 70 percent of the long-term debt of $2.9 billion.”