It's not just California: Michigan wants to raise the gas tax, too

Filed under: Etc., Government/Legal

California isn't the only one taking aim at the pumps in an effort to raise state revenue. The Michigan state legislature is also proposing a hike in its gas tax that could potentially make its gas taxes the highest in the nation. The current nineteen cent per gallon tax on gas, and fifteen cent per gallon tax on diesel, would be replaced by a simple 18% tax on the wholesale prices of both. Michigan says that the state isn't earning enough now that people are driving less, and driving more fuel efficient cars.

The reasons in for the tax are the same in MI as they are in CA: the transportation sector and road funding are sorely inadequate. Michigan has legendarily bad roads -- not the worst in the nation, but close in some cases. The oil and gas station lobby, however, wants none of it. One oil company exec said, "Cheap fuel prices are fueling the (economic) activity we have now. Taxing gasoline to fix roads is an old way of doing it." They are also worried that when gas prices inevitably go back up, the tax will make pump prices exorbitant.

A Michigan transportation rep said "We didn't necessarily see memos coming out from them when the price of fuel exceeded $4 a gallon." He also said that the tax is capped in the first couple of years, so no one needs to be concerned. The measure, along with a rise in DMV registration fees, is expected to raise $1.5 billion per year. If it doesn't pass this year, the legislature is expected to resurrect it next year. Hat tip to Braggin Dragon!

[Source: Michigan Live]

It's not just California: Michigan wants to raise the gas tax, too originally appeared on Autoblog on Sun, 28 Dec 2008 18:02:00 EST. Please see our terms for use of feeds.

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High gas prices to keep 10 million cars off the roads

Filed under: Etc., USA

Photo by Cyfer13. Licensed under Creative Commons license 2.0.

Before gas prices began soaring skyward, it had often been suggested that an artificial increase to the price of gas could have the effect of forcing consumers to purchase more fuel efficient vehicles and could keep people from making frivolous trips. It's now safe to say those projections were likely true. Now that fuel prices are what they are, more people are choosing hybrids and other fuel efficient models, and some are even choosing two wheels over four. Additionally, Jeff Rubin, chief economist at CIBC World Markets, projects that $7.00 per gallon of gas could potentially remove ten-million vehicles from roadways in the United States alone. What's more, Rubin predicts that by 2012, the average miles driven will drop by as much as fifteen-percent.

Interestingly, Rubin compares U.S. driving habits with those of individuals living in Britain. Statistics show that ninety-percent of American drivers commute every day to work in an automobile, while only sixty-percent of British workers do the same. Fuel prices in America, though rising, have yet to match those that many European countries have seen for years.

[Source: The Detroit Free Press]

 

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