Back on September 21, 2005 (and a few other times) I wrote about the issue of the state sales tax on gasoline and how the State of Michigan really had no incentive to see the price of gasoline decrease.
In The Detroit News today, there was an editorial about the subject:
Fuel prices rise and fall according to supply and demand. There's not a shred of evidence that price increases reflect anything other than that age-old dynamic.The femeral artery is cut... get the iodine!
But if state lawmakers want to give Michigan motorists a break, they have the power to do so by suspending, modifying or eliminating the state sales tax on gasoline.
We're generally not in favor of tinkering with taxes in reaction to commodity prices because the chase becomes an endless game. But if lawmakers are worried, they have options beyond petitioning Washington, a tinker-toy scheme proposed by the governor.
Come on guys, nothing has changed since September when I wrote:
Let's see, here's the math:Okay, maybe it doesn't....
Okay, let's not solve the problem; let's cut tax revenue for schools.
- 15 gallons @ $3.00 per gallon is $45.00
- eliminate the sales tax and save $2.70
- eliminate the poor signal progression and make that 15-gallon purchase a 12 gallon purchase for the same distance traveled and save $9.00
Gosh, and I thought our government didn't understand.