MI Gas and Plate Tax Increases
MI now the 5th highest in the Nation for gas tax. The kick in the balls is it wont even work to fix the roads. I'm sure there will be a few projects done but its gonna be the typical money shell game. This money goes here, then that money goes there, and this money go to me (or Detroit, Flint, Saginaw). They gotta cover the costs of the Flit water debacle some way. I'm sure we will see raises again for our elected officials.
"The state tax on unleaded gasoline will increase from 19 cents to 26.3 cents per gallon on New Year’s Day
Fees levied annually to register cars, vans, light trucks and commercial trucks will rise 20 percent. The average fee statewide is $120, so the average increase would be $24 to $144, said Secretary of State spokesman Fred Woodhams.
The complicated strategy — the result of a compromise plan the Republican-controlled Legislature and Snyder struck over a year ago —
includes an eventual general fund revenue shift that promises to create budgeting challenges for future lawmakers. But the new taxes and fees are what will catch the immediate attention of drivers and businesses.
“It’s a reasonable increase that’s shared by those who drive more, pay more,” said state Sen. Wayne Schmidt, a Traverse City Republican who voted for the tax increases. “We’re going to see those dollars put into local roads.”
Transportation officials warn the higher taxes won’t translate into better roads for years to come because the Legislature is gradually diverting $600 million in income tax revenue from the state’s general fund to repairing roads.
Michigan won’t be spending the full additional $1.2 billion annually on roads and bridges until 2021.
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2021? By that time there will be some other crisis they will have to divert the money to.
Oh yea, don't forget, these increases will cause an increase in shipping costs which will translate to increase cost at the cash register. Companies wont eat this increase, they will pass it on to us. Which in turn also generates increases sales tax, which will go God knows where.