Lapeer County Tea Party

Keeping the grass roots growing!!

 Pay More Taxes  ?

On May 5th voters will go to the polls to vote on increasing the state sales tax from 6% to 7%. This is being publicized as a way to increase money to fix the roads that are in desperate need of repair. This isn’t as cut and dry as it sounds. In December, the Governor signed road bills from the Legislature that are linked to a package of 11 bills.  These bills go into effects once the sales tax increase is approved. This requires an amendment to the Michigan Constitution. Make no mistake this package is a total tax increase of about $1.8 billion, according to estimates found in Michigan Votes and in the Detroit Free Press. Voting “Yes” will replace Michigan’s flat 19-cents-a-gallon gasoline tax and 15-cents-per-gallon diesel tax, with a higher wholesale tax. The tax would be based on whole sale prices that would significantly rise with the fluctuation of oil prices. The base fuel tax rate would be raised to 14.9 percent per gallon. This would more than double the base fuel tax to around 42 cents a gallon initially. Vehicle registration fees would increase by $95 million – partly through a change that would freeze license plate fees so they no longer decline.  Electric and hybrid vehicle owners would be assessed extra fees and freight trucks could pay $1,000 more annually in fees. This would no doubt significantly raise the price of goods transported. There are many other changes these bills would effect.  Almost 40% of the tax increase will be going to special interest deals and not the roads.  The voters are being misled if they think all the money is going toward roads.

We all want the roads fixed.  However, I do not believe we need to increase any taxes on Michigan residents. Michigan spends less on roads than any other state. It ranks 33rd in spending per lane mile and 47th per vehicle mile traveled, according to the State Transportation Department. Michigan does not spend near as much money on roads as most other states do. Michigan also has some of the country’s highest taxes at the pump, about 10 cents a gallon above the national average. The answer is to properly allocate and spend the money we already give to the state with our present taxes and fix the roads.

Tim Lintz

Lapeer, Mi.

 

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Jan 21, 2020
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