Wednesday, September 21, 2005

Excessive Spending - A BandAid on a Gunshot Wound

From the Miami Herald:

Posted on Tue, Sep. 06, 2005
House vote would let governor eliminate sales tax from gasoline

AMY F. BAILEY

Associated Press

LANSING, Mich. - The Michigan House voted Tuesday to allow the governor to lift the 6 percent state sales tax on gasoline and diesel fuel during a fuel emergency.

The bill, passed unanimously, would allow the governor to issue an executive order eliminating the sales tax on gasoline for a specific time. Without the sales tax, a motorist with a 15-gallon gas tank could save about $2.70 on each fill-up if gas was running about $3 a gallon.
Let's see, here's the math:
  • 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 travelled and save $9.00
Okay, let's not solve the problem; let's cut tax revenue for schools.

Gosh, and I thought our government didn't understand.