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    House GOP Agrees with Jennifer Granholm's BFF?


    By Nick, Section News
    Posted on Mon May 12, 2008 at 01:17:46 PM EST

    It's true, it's true.  House Republicans are on the same page as both John McCain and Jennifer Granholm's Presidential candidate of choice, Hillary Clinton.  While the Presidential contenders travel the country arguing that the federal government should forgo it's 18.5 cent per gallon gas tax this summer Michigan's House minority caucus is arguing the State should give up it's double-dipping sales tax on gasoline for the same period of time.

    While insisting that the State keep it's 19 cent per gallon gas tax in place, the plan being advanced by Representatives Rick Jones and Paul Opsommer would save drivers about 25 cents a gallon based on the price at the pump yesterday when I had to fuel-up.

    Remember, on top of that 19 cents a gallon State tax and the 18.5 cent a gallon federal tax Michigan is one of the few states in the nation to add a sales tax at 6 cents per dollar.  That, of course, makes it a windfall tax for the State.  The higher the price of gas the more they rake into the state coffers.

    At the current rates folks who are smarter than me figure this would be a $280 million tax break for Michigan motorists.  Remember, the House GOP recently introduced nearly $700 million in cuts and reforms that would hold education and revenue sharing spending harmless.  Never mind the fact that recent budget projections indicate the government's taking in more than it was planning anyways.

    Now here's where things could get fun... if the Feds suspended that 18.5 cents and Michigan ended the practice of raking in this obscene windfall tax profit motorists could save nearly 43 cents a gallon!  Instead of $3.99 you're looking at something closer to $3.56.  

    If you're pumping twelve gallons into your tank to fill up you're looking at saving $5.16.  Immediate savings.  Every time.  

    IF the Democrats, who control both the State House and Congress, act.  

    Then again, that money could keep going to Lansing to fund things like horse racing prizes and five or six years worth of welfare for able bodied adults.

    No word yet from Jennifer Granholm.  This sort of puts her between a rock and a hard place.  Her candidate of choice supports the plan but so do Republicans.  What a world, what a world.

    < Candidate Introduction: Chris Greenshields Candidate for Ingham County Sheriff | Michigan's Top House Race: Gary Peters vs. Joe Knollenberg (vs. Quacky Dr. Jack Kevorkian) >
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    Eliminating Gas Tax wouldnt do anything good. (none / 0) (#1)
    by JGillman on Mon May 12, 2008 at 06:58:13 PM EST
    Two reasons:
    1.  Roads in a state of disrepair are costing us more daily already.  The "windfall" should be tagged as ROAD COMMISSION ONLY as the number of gallons which pay for county roads have been dropping.

    2.  A reduction in the taxes merely gives more room for the price increases that will follow.

    I generally do not support many forms of taxation, but the gasoline taxes are truly one of the most FAIR out there.

    Knee Jerk reactions generally support future failures.

    Never fear!!  GAS PRICES WILL FALL, as I have argued in this post >GAS PRICES WILL FALL<

    I certainly could be wrong, but optimism works better than the alternative. ;o)

    Free market? (none / 0) (#2)
    by NoviDemocrat on Tue May 13, 2008 at 09:14:13 PM EST
    If we increase demand for gas at the very time when supplies are low, will prices go up or down? I'll let the Republicon economists here share their wisdom.

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