So you want to raise the gas tax, Gov. Snyder? Well, think twice!

Comment on the February 6 prediction:  Exactly as predicted, prices rose to $3.79 on Thursday.  That was CORRECT!  But where did this new hike to $3.89 come from?

Monday, February 11, 2013, 6:00PM:  Wholesale prices rose another 7 cents on Friday, so we got a hike today to $3.89.  Does that explain it?  Or it there something more devious going on?  Perhaps some Big Red person doesn’t like the gas tax hike that Michigan Gov. Snyder proposed last week, and is trying to send One Tough Nerd a message?  So far, Michigan seems more greatly affected by today’s hike than our Big Ten neighbors.

Here’s my take on gas taxes:  Someone has to pay to build and maintain our roads, and in northern states like Michigan, it costs more because of the effects on winter weather.  So, when I hear comments like, “Michigan has high gas taxes already”, those higher taxes may be justified.  We also have improving fuel economy, so the owners of hybrids are paying less gas tax, because they are buying less gas, but they are using the roads just as much.  But, I don’t want the state to start reading black boxes on cars to determine how many miles I’ve driven.  Is the current fuel tax insufficient to pay for road construction?  Probably, but I’d like Snyder to be more convincing about this before agreeing to a tax hike.  But what would be the fair tax to hike?  Yes, I have more questions than answers right now.  –Ed Aboufadel

Updated: February 11, 2013 — 5:58 pm

7 Comments

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  1. skyler - grandville

    absolutely! In my recent letter to snyder, I have asked him: where was the money from earlier taxes used? and with increasing gas prices and taxes, the high price of living in MI will be transferred to the customer! I will make my letter an open one and put the link here! I have also asked snyder to give the balance sheet of earlier collected taxes!!! any suggestion would be welcome to add to this letter.

  2. Do government officials even pay for their own gas? If not, that explains why they don’t care about raising the price gas taxes every year it seams.

  3. Hubie24: My guess is that if it is work related, they probably don’t. And as far as their private travel…..who knows? Further, if they do pay for their own fuel, private or public travel alike, their demand is probably quite elastic, that is they can reduce it. Mine, on the other hand, is quite inelastic once you take out the vacation and limit yourself to stops on the way to and from work. So my cost’s can’t really be controlled beyond a very real point; I have to get to my employer or I don’t get my pay. And I have been at minimum travel for 3.5 years now. Down from 12,000 miles a year on my car to 7,200 miles a year. No more miles to cut. None. And the $2,925 the household spent on gasoline last year, means about $1,500 that did not go to restaurants, home fix-ups, and various things that could have helped the economy. How many families are doing the same thing? Almost all. A lot of money not helping the economy anymore.

  4. skyler-grandville: do share your letter here!
    TimmP: I agree with you, I ‘have to’ travel ~1000 miles per week! I am not joking it is 200 miles per day. I pay for gas and I pay for the maintenance (oil change, rotation, etc) every month. I use close to 1940 gallons of gas per year and my average yearly cost is $7200. This situation can not be compromised unless I quit the job. I can’t move near the job location as there are no schools, malls in that remote area. And know that the pay is also not that high that this 7.2K won’t pinch. There is almost no restaurants, no movies, and foremost no time to recreate. Staying home is what I call vacation as, it is total of 2 hrs drive one way taking 4hrs of driving per day and then 10hrs job. leaves just 10 for everything else. The high gas prices with proposed taxes, I am at the breaking point and I know many are. I am just wondering if we are working only to pay taxes or do we have any life at all?

  5. Spot is up over $3.05 as of 1:00. Up almost 12 cents. What pipeline broke? What refinery had a major fire? I just might have to sell my cars and take early, VERY EARLY retirement.

  6. That means the higher priced states will see $4.00 tomorrow ($3.999)Maybe we’ll get lucky in Ohio and “only” see $3.899.

  7. Lets see, oil is way down the last couple of days, wholesale gas prices are down a little. That means the Greedway is going to lower prices this week right? God I kill myself sometimes…
    That switch only works in one direction….

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