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All Things Michigan

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Group wants to raise Michigan's gas tax by $.09

Andrew Norton

Here we go again. Our roads need fixing and our budget needs balancing. Hmm, what to do? Oh yeah, lets have a tax increase!

But, it's for the good of the people.


The Michigan Infrastructure and Transportation Association wants to keep us driving and help out Michigan's economy (how generous of them). Therefore, they have proposed that we pay another $.09 in taxes at the pump.

Oh, and they also would like to see an increase in vehicle registration fees. It is reported that the MITA could raise them by as much as 50%. The Free Press reports - "the average vehicle registration in Michigan is $110; MITA’s proposal would raise that to $160."

From what info I could find, it appears we already pay $.352 (I think that includes federal taxes, but I can't say for sure) in taxes on each gallon of gasoline plus the state sales tax of 6%.

Lets have some accountability here with the state's spending before we get more money taken out of our wallets. Why is it that the government raises taxes before really making any extensive cuts?

Sure, they'll raise our taxes on fuel "temporarily" and when it comes time to decide on renewing the tax or not it will be renewed because the funds raised by the tax will have been "temporarily" diverted to fund some other piece of our bloated state government. See for yourself in a 140 page PDF (warning - this could take a while to view with a dialup connection) of the Fiscal Year 2007 state budget.

From a business standpoint it is actually a triple whammy.

First, our customers will have less money in their pockets. Second, when we order products to make our gift baskets we will pay more in freight charges. Third, our shipping costs will go up with more fuel surcharges (yes, UPS already hits us with fuel surcharges - what can brown do to you, eh?).

The last two items above would most likely lead us to raise prices (oops, we're up to a fourth whammy) on our gift baskets and/or shipping prices as well. This becomes another strike to the customer who already has less funds available due to the gas tax increase.

I don't like this idea on multiple levels.

Here is a crazy idea - lets cut spending and quit funding our state's governmental excesses on the backs of businesses and taxpayers.

Read the full article at the The Detroit Free Press website.