Norm Hughes 1 hr. Draft on the Transportation and Sales Tax hikes for this weeks Conservative Choices Newsletter: (It unfortunately needs to be comprehensive to understand how much they are trying to shaft us.) ++ Transportation Tax is featured for the 7th week in a row. It is an issue of trust, respect, stewardship and honor for families as well as politicians. It will affect the cost of everything we buy and everything we do for our families. The proposal that was passed is far worse than anything the legislature was working on. It is loaded with special interest money and political plums. The scheme passed this week is timed to rapidly push through a long term sustained growth in Michigan state, school and local governments with little revenue over the next two years to actually repair roads. It is timed, as the Governor says, to when public pain will be the worse over potholes. One could imagine the campaign might feature a roll-back in road repairs over the next several months to heighten the pain leading to the vote. Every government employee and perspective employee and their families on all levels, and government contractors, all will have a special interest in getting this passed. Counties would get 39.1% of $1.2 Billion on roads = $ 469.2 Million + as prices escalate Cities & Villages would get 21.8% of $1.2 Billion (261.6 Million) plus $95 Million = $357 Million+/year Government Schools get $300 Million more a year and increased guaranteed bites into several taxes “Public Transportation” would get $ 130 Million more a year ++ Under the Governor’s scheme passed Friday, If passed by Voters in May, Fuel Taxes will more than double – AND sales tax will go up one cent (16.7% increase). The package increases state taxes at least $ 1.7 Billion a year. It also raises Heavy Truck fees ($50 Million) and vehicle registration tax revenue ($ 45 Million) and taxes vehicles at their new sales price without depreciation. It throws money as counties, cities, schools mass transit and increases the Earned income Credit from 6% to 20%. A 1-percentage-point sales tax (16.7%) increase would generate an estimated $1.34 billion in new revenue for the complex road funding plan. They also passed a $60 Million Internet Tax that is not contingent on the May vote. This vehicle registration fee increases is essentially a “poor man’s tax”, perhaps discriminatory, as those who prefer or can only afford to drive older vehicles will pay annual plate fees as if they were new. This is particularly harsh on those who prefer older luxury vehicles. The scheme features a 14.9% ad valorem tax calculated against the average wholesale prices of gasoline and diesel, effective October 1, 2015. At $ 3.00 per gallon that is 44.7 cents per gallon. At $ 3.50, it is 52.2 cents. At $4.00 per gallon it will be 59.6 cents. The legislative analysis says the initial tax rates would rise from 19 cents to 41.7 cents per gallon for gasoline and 46.4 cents for diesel. For future years, the 12-month rolling average period ends on the last day of the month that is three months prior to the month the new rates would take effect. The bill contains an inflation adjustment mechanism to limit large swings in the cents per gallon levy that may result from volatile gas prices so that the levy cannot increase by more than 5 cents per gallon above the rate of inflation. Additionally, the levy could not fall below the initial rate, adjusted for inflation or 5% per year, whichever is less. The Legislative Analysis with charts can be found here: legislature.mi.gov/…/pdf/2013-HLA-HJRUU-811CFFAD… Other articles/comments here: detroitnews/…/michigan-legislature…/20627561/ rightmi/stop-the-16-7-tax-increase/ americansforprosperity.org/…/oppose-complex-tax-hik…/ ++ Based on Gov. Snyder’s administration estimates of the full-year impacts of the bills in this package, the total net impact of the package, assuming voter approval of the proposed constitutional amendment, would be an estimated ANNUAL increase in state revenue of $1.7 billion (and automatic increases). Estimated net impacts for individual funds would be as follows: • $1.2 billion per year for distribution to road agencies o 39.1% to the State Trunkline Fund, ($ 492.2 Million) o 39.1% to county road commissions, ($ 492.2 Million) and o 21.8% to cities and villages), ($261.6 Million) o Except that for FY 2015-16 the first $800 million of this revenue would be dedicated for pay-down of transportation-related debt and o for FY 2016-17 the first $400 million would be dedicated for that purpose. • $300 million to the School Aid Fund (SAF). • $130 million to the Comprehensive Transportation Fund (CTF), for public transportation purposes. • $95 million for constitutional revenue sharing payments to cities, villages, and townships. THE FIRST $ 1.2 BILLION RAISED over the next two years WILL GO TO “TRANSPORTATION-RELATED” (mass transit, etc.?) DEBT AND WILL NOT REPAIR ROADS. This is similar to the half a billion dollars or so that the State has increased spending on “transportation” over the last two years that was not spent to fix roads. ++ This is all really Shocking and Disgusting. Of course the conservatives who voted for it say they just put it on the ballot so the voters can decide. The proposal has huge goodies for every public special interest and their quasi-monopoly union contractors. Every public employee and their families will be pressed to work to pass this. Then there are the Governors folks and the crony capitalists who will profit greatly by it all. The money will be huge, with no known off-setting backer who can come close to matching the money they will put in. It will greatly press our movement to try to stop this railroad. The crucial bill failed the first time by one vote. Under re-consideration Senator Michael Green flipped. (You may remember he flipped in December, 2012 to vote against Freedom To Work). Cloakroom talk is that behind the scenes is that Senate Majority Leader was working over Coleman Young, Jr. to flip, but he ultimately refused. Sen. Coleman Young, D-Detroit, joined 11 Republicans in voting no on the sales tax proposal. Young said the Legislature punted to voters instead of solving the states road funding shortfall themselves. Its not leadership, Young said. Thats political cowardice, plain and simple. detroitnews/…/michigan-legislature…/20627561/ Green supposedly flipped in exchange for the House considering his SB 789 to eliminate county concealed weapon licensing boards, and transfer the responsibility for issuing concealed pistol licenses to county clerks, with the State Police performing the background checks. In rapid succession, to secure the flipped vote. In rapid succession the House stayed open to consider and pass an alternative that then passed both houses – and we get to vote to pay $ 1.7 Billion more a year! ++ In Michigan lower and middle class taxpayers pay disproportionate amounts of the tax burden under our current tax system. itep.org/pdf/whopaysreport.pdf pp.69-70. This proposal appears to increases that disparity. Some studies show 40% of Michigan working families do not make enough to cover basic needs. A United Way paper said they fell an average of 13% short. Will we tax away their mobility? ++ Voters Do Not Want a Gas Tax Increase: 60.5% of voters oppose any road tax increase. “The statewide survey of 600 likely voters May 20-22 found 45.5 percent say the state already has enough money to spend on roads, and that the current pot of fuel taxes and vehicle fees needs to be better spent. Another 15 percent reject a small tax increase and say that while extra money for roads and bridges may be needed, it should be found elsewhere in the state budget.” From The Detroit News: detroitnews/article/20140528/METRO/305280144… In a May, 2014 EPIC-MRI Poll voters indicated they would approve a 1 cent sales tax increase to repair roads, by a 52% to 44% margin. Will they support that AND a 22 cents per gallon gas tax increase PLUS increased motor vehicle registration fees ++ DO YOU WANT TO PAY A COUPLE THOUSAND DOLLARS MORE A YEAR? Someone needs to fight all these tax increases and the May 5 Ballot Proposal. Defeating the proposal will STOP many of these tax increases. With $ 1.7 BILLION a year to the victors, you can expect the political establishment, local governments and their contractors will pour millions of dollars into passing this. Will there be organized opposition? Will it be funded? That depends in part on YOU. If this passes your family can expect Will you donate today, please, to UpRight Michigan PAC to begin the opposition? Volunteer here: supportfreedomtowork/volunteer Or Donate Here: https://supportmichiganfreedomtowork-micpac.nationbuilder.c…
Posted on: Fri, 19 Dec 2014 23:36:51 +0000
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