Monday, July 16, 2007

Michigan gas prices highest in nation thanks to our sales tax

Michigan currently has the highest gas prices in the nation according to the Detroit News.

One reason is that we're at the end of the gas pipeline and its more expensive to ship it here from the refineries.

The other reason is that Michigan levies a 6% sales tax on top of the price of gas amnd all other federal and state taxes levied upon it. Yes, we're paying a tax on a tax. Further addding insult to injury, the only tax the sales tax is levied upon is the 19 cents road tax that is a fixed amount that doesn't change with the price of gas.

So gas can go up, we pay more taxes, the state gets more money and our roads worsen all at the same time.

Some of this windfall the state is experiencing from the increased take in sales taxes should be directed back towards fixing the roads and building new ones to enhance our infrastructure, which badly needs it. -- good luck on that happening.

Instead the state wants to raise the Road Tax on top of the already exorbitant take it is getting from the sales tax, thereby ensuring that Michigan is #1 in something - namely the price of gasoline.

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