Last night, lawmakers approved a $1.7 billion tax-hike scheme that were supposed to believe will help fix the roads. The plan, which requires voter approval in May, includes: •16% increase in the state sales tax •23 cents-per-gallon hike in gas taxes •$95 million more in registration taxes •$60 million in Internet sales taxes In addition to a mishmash of tax hikes, the plan includes giveaways to special interests that have nothing to do with fixing our roads--from mass transit to welfare-style government assistance. We need your help educating friends, family members and co-workers about this disastrous plan. Go here if you want to get involved. Read below for more details. WHAT DOES THE ROAD-FUNDING PACKAGE MEAN FOR TAXPAYERS? TAX HIKES $1.2 billion gas tax hike Michigan drivers will pay 23 cents-per-gallon more in gas taxes for a total of more than 60 cents-per-gallon. That would give Michigan the highest gasoline excise tax in the nation, higher than California or Hawaii. Over time, as the price of gas rises, that tax will go up without a vote of the legislature or input from taxpayers. $1.34 billion sales tax hike Lawmakers voted to put a 16% hike in the state sales tax on the Michigan ballot. If approved, the rate would rise from 6% to 7%, including on Internet sales. (Lawmakers voted on separate bills, SB 658 and 659, to force Internet sales tax collections.) $95 million registration fee tax hike Michigan drivers will also pay $95 million more in registration fees. Long-term, this tax hike is expected to total $210 million. GIVEAWAYS In order to buy enough votes to get the proposal passed through the legislature, the package was loaded up with giveaways that have nothing to do with roads: $260 million welfare-style EITC assistance The Earned Income Tax Credit resembles direct government assistance, such as welfare and food stamps, more than a tax credit. Filers who pay out nothing in income taxes still get a check from the government under this program. $300 million more for education establishment Over the past four years, spending on education has increased by more than $1 billion. This deal forks over even more money for the public school apparatus, even though Michigan is one of 21 states that employ more non-teaching staff than teachers. $130 million more for mass transit Instead of dedicating all new revenue to roads, the package hands mass transit programs another $130 million, a move that was viewed as necessary to buy support from Detroit-area politicians who favor bigger-government. Stay tuned for updates as this issue continues to develop. View the governments House Fiscal Agency analysis here. SOURCES House Fiscal Agency, Legislative Analysis Transportation Funding Package, Dec. 18, 2014 American Petroleum Institute, Gasoline Tax, October 2014 Tax or Welfare? The Administration of the Earned Income Tax Credit, UCLA Law Review, Lawrence Zelenak, 2005 MEA Economist Ignores Billions in Education Spending, Capitol Confidential, May 13, 2014 New Study Finds 21 States Have More Non-Teaching Staff , Friedman Foundation for Educational Choice, February 28, 2013
Posted on: Tue, 30 Dec 2014 04:24:39 +0000
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