A Really Bad Idea

Yesterday One America News posted an article about the U.S. Chamber of Commerce‘s suggestion that the gasoline tax be raised to pay for an infrastructure bill. No. That is a really bad idea. American’s just got a tax cut, now the Chamber of Commerce essentially wants to take that tax cut away.

The article states:

The right-leaning U.S. Chamber of Commerce says a federal gas tax of 25-cents per gallon could raise more than $370 billion over the next ten years.]

It’s been a while since the U.S. Chamber of Commerce was right-leaning–they support amnesty for illegals, common core, and other things that are definitely not right-leaning.

Consider what 25-cents a gallon would mean to the average working person. That could mean between $50 and $100 a month depending on the amount of driving they do and the mileage their car gets. The abrupt rise of gasoline prices leading up to 2008 was a small part of what caused the housing bubble to burst–people who were scraping by to pay their mortgages suddenly got hit with $100 plus a month in added fuel expenses for gas and oil and could not pay those expenses. Is the Chamber of Commerce trying to slow down the growing economy by adding a new tax? It sure seems that way.

If Congress needs money for infrastructure, they need to find a place to cut spending to pay for it.

Another Reason To Oppose An Increase In The Gasoline Tax

I have previously stated my objection to raising the tax on gasoline now that the price per gallon has dropped–the gas tax is much more of a burden on lower income people than on the upper middle class. As much as I do think tax burdens should be somewhat equal, I don’t like to see people spend a major portion of their income just getting to work. When the price of gasoline dropped, I think everyone breathed a sigh of relief–it was like getting a tax rebate. Now Congress is ready to mess that up.

The Wall Street Journal posted an article today explaining where the money paid in gasoline taxes has been spent. Because we are hearing cries about our crumbling infrastructure, you would think that the gasoline tax money would be spent on roads. Think again.

The article reports:

But before considering any policy that would raise additional revenue, Congress should first reform where the fund’s money goes. The Highway Trust Fund now pays for a plethora of projects that have little to do with highways. According to a 2013 analysis by the Heritage Foundation, at least 20% of gas-tax revenues in recent years went toward other programs, from light rail to bike lanes to landscaping projects. Some funds even went toward establishing transportation museums.

Hence the financial problems. According to an editorial in this newspaper, spending on non-highway projects has increased by nearly 40% since 2008, while highway-related spending has remained flat. If Congress directed the fund to spend its money only on highways and other road-related infrastructure—what it was initially created to do—it would be 98% solvent for the next decade.

This is the perfect picture of the problem with government spending–the problem is not lack of money–the problem is how the money they have is being spent.

The article concludes:

Higher gas prices, tax-induced or otherwise, also correspond with diminished economic growth. When you and I have more money to spend, we usually do so, benefiting the economy in the process. Financial analysts at Goldman Sachs predict that lower gas prices could add as much as half a percentage point to GDP growth this year. Some of this will be offset by corresponding declines in the oil and gas industry, but the overall effect on America’s economy is still expected to be positive in 2015.

This puts in perspective the first quarter’s lackluster 0.2% economic growth. Without the benefits of lower gas prices, growth could have been even slower, which is the last thing Americans need. When the Highway Trust Fund’s future comes up for congressional debate in the coming weeks, legislators should consider reforming it rather than simply demanding that you and I pay more at the pump.

There are Republicans and Democrats who have authored this bill. Every one of them should be voted out of office at the next opportunity. This is not the time to raise taxes–this is the time to begin to spend responsibly.

The Government Does Not Need More Money–It Needs To Spend Less

Breitbart.com is reporting today that Senator John Thune, the incoming chairman of the Senate Commerce, Science and Transportation Committee, is considering all options to replenish the shrinking Highway Trust Fund–he would not rule out a gasoline tax increase.

This is the kind of thinking that makes me go ballistic. Gas prices have finally come down to the point where Americans don’t cry when they fill up their gas tanks, and this person wants to increase to tax to raise the price. The recent decrease in gasoline prices is the equivalent of a tax break for Americans who use their cars to commute to work or use their cars as part of their businesses. An increase in gasoline prices due to a tax hike would not be good for the American economy in general. I can’t believe a Republican senator would even consider it.

This sort of thinking does not represent the American people. If raising the gasoline tax seems like a good idea to Senator Thune, he needs to be voted out of office.

 

An Announcement From A Friend

Marty Lamb has worked tirelessly to repeal the automatic gas tax increase voted in by the Massachusetts legislature last year. He sent out the following email today:

Today I am announcing that I am leaving the Yes on 1 Ballot Question to Repeal Automatic Gas Taxes.

 I still fully support the initiative!

 So why am I leaving????

 You won’t believe this!

 The Office of Campaign and Political Finance says that our ballot initiative cannot tell the public which legislators voted for or against linking the gas tax to inflation. I feel that this a gross infringement on our first amendment rights!

 We could fight them in court…

 But…

 Time is running out for this election cycle.

 So today I am announcing the TankTheGasTax.Net PAC which will educate voters how legislators voted on indexing the gas tax to inflation. We will tell voters if their Representative or Senator voted for Taxation Without Representation. We will tell you who is against indexing before they were for it. We will tell you which members voted to take more money out of your pocket while collecting taxpayer funded per diems.

 If you agree that the public has a right to know, then please click here to make a much needed donation to kick-off this PAC.

 Beacon Hill insiders want to keep us quiet. I am not going to let that happen.

 While I am very sad about leaving the ballot group which I help build, I am hoping that you will show your support for my decision by making a donation today.

 Your financial support will be immediately used to print handouts that will be distributed to voters regarding their votes to automatically tax us.

 Help me hold them accountable!

 Please let me hear from you today!

 Thank you,

Temporarily this automatic tax increase and government transparency on the tax increase is a Massachusetts issue. Don’t count on it remaining only in Massachusetts.

Anyone Can Make A Difference

NewsMax reported yesterday that the initiative to stop the automatic gasoline tax increases in Massachusetts has made it onto the November ballot. The effort to get this on the ballot was a true grassroots effort.

The article reports:

Having secured a position on the fall ballot and with little money to propel it, the initiative to thwart an automatic rise in the gas tax by linking it to inflation could have an impact on other states if Bay State voters pass it this fall.

As Barbara Anderson, executive director of Citizens for Limited Taxation, told Newsmax, “Any time a tax cut passes in blue-state Massachusetts, it gives hope to taxpayers everywhere. In other words, if we can do it, so can they.”

Veteran Massachusetts political consultant Holly Robichaud told Newsmax: “You have to remember that Massachusetts is the birthplace of the American Revolution and citizen outrage against ‘taxation without representation.’ And that’s about what happened here last year.”

She was referring to a vote in the overwhelmingly Democratic Massachusetts Legislature for a $500 million tax package. Buried within the package was the 3 cents per gallon tax increase. But far more significantly, the package also included language stating that the gas tax would now be linked to inflation.

“That means when inflation goes up, so does the gas tax — automatically, and without a vote by elected representatives,” Robichaud explained. “Theoretically, it could rise to infinity and beyond.”

Her view was strongly seconded by veteran tax battler Edward F. King, chairman of King Information Systems, founder of Citizens for Limited Taxation, and a Republican candidate for governor in 1978.

This is good news for Massachusetts residents, but it also an example of how ordinary citizens can undo the mischief that politicians do.

The article reports how it was done:

Although the potentially explosive linkage of the gas tax hike to inflation was largely ignored in the press, Robichaud, with her political ear to the ground, called a meeting at her Scituate home. Over Chinese food, activist Republicans, including former U.S. House candidate Marty Lamb, state Rep. Geoff Diehl, and GOP State Committeeman Steve Aylward plotted how to stop the tax link to inflation from becoming law.

Out of the meeting came language for a proposed statewide initiative that would not repeal the gas tax increase, but decouple it from inflation. As Robichaud explained, “We wanted the debate to be about automatic tax hikes. I think the debate on the principle is more important than 3 cents.”

Without this initiaitve (and hopefully a victory in November), the gas tax would have risen automatically without any legislator having to take responsibility for the increase–a politician’s dream and a taxpayer’s nightmare.

Happening In Massachusetts

If you are upset that the gasoline tax in Massachusetts is now indexed to inflation, here is how you can change that:

TANK THE AUTOMATIC GAS TAX HIKES

 

FOR IMMEDIATE RELEASE                                               August 6, 2013Contact: Holly Robichaud
781-378-1798

 

TANK THE AUTOMATIC GAS TAX HIKES

 

Ballot Initiative Will Stop Taxation Without Representation

Boston, MA…Today a group of taxpayers gathered on the outside State House stairs to announce that they are filing a ballot initiative to cut the linkage between the gas tax and inflation which the legislature recently passed.

“It is outrageous that Beacon Hill is increasing our gas tax every year for the rest of lives without a vote.  That’s taxation without representation.  It is wrong and we are going to stop it,” said Steve Aylward, who is the Republican State Committee man that ran the very successful signature drive for Mike Sullivan last winter.

The initial supporters of the ballot initiative include Marty Lamb, Chris Pinto, Republican National Committee woman Chanel Prunier, Les Gosule who passed Melissa’s law in 2012, Jeff Bailey, State Representative Leah Cole, Stephen Coulter, Alex Vispoli, State Representative Geoff Diehl, State Representative Jim Lyons, State Representative Marc Lombardo, Rick Gleason of the Massachusetts Motorcycle Association, Rich Howell, Paul Craney of Mass Fiscal, Desiree Awiszio, Jamie Kang, Mike Mosca, Marylou Daxland, Katie Regan, State Representative Shaunna O’Connell, John O’Mara of the Northborough Tea Party, Barbara Anderson of Citizens of Limited Taxation, and many more.

Last month the legislature passed the so-called transportation bill which included a gas tax hike, a new tax on computer software, and a cigarette tax increase. It also linked the gas tax to CPI which allows the gas tax to increase every year without a vote of the legislature.

“This year our state took in over $600 million above projections.  We don’t need this tax package.  I voted against this bill in the House and I am not going to sit on the sidelines now while the state reaches into our wallets every year for the rest of our lives for more and more money without an accountable vote being taken,” said State Representative Diehl.

“How much more will Beacon Hill take from our wallets?  We don’t know.  We just know it is going up automatically with no debate, no input and no oversight,” said Pinto. 

“Our elected officials have failed us.  Our only alternative is to pass a ballot question that will stop this taxation without representation,” said Marty Lamb. 

The attorney for the group is former U.S. Attorney Mike Sullivan.

Since launching the facebook page last week the group has over 695 friends.  The plan is to launch a website shortly in preparation for collecting  100,000 raw signatures. 

Enhanced by Zemanta

The Tax Increases In Massachusetts Take Effect Today

CBS Boston reported today that Massachusetts is increasing taxes on gasoline and cigarettes (effective today) and adding a 6.25% sales tax on computer software services.

The gasoline tax in increasing 3 cents a gallon, it will now be 24 cents a gallon, and the cigarette tax will be increasing $1 to $3.51 per pack.

On Monday, The Examiner reported:

Massachusetts made state history July 29th by implementing a new gas tax increase that is pegged to inflation. The new tax that takes effect Wednesday, following an override of Governor Patrick’s veto, adds 3 cents to the state’s already relatively high 21 cents per gallon tax. Adding in federal taxes, the total tax on a gallon of gasoline in Massachusetts is now 42.4 cents per gallon. Depending upon which grade is chosen, drivers now pay about 11 percent in taxes for the gas they use. That is the highest tax rate of any product one can buy in Massachusetts except cigarettes. Smokers also saw a one dollar tax increase per pack in this new bill.

Please note–THE GAS TAX INCREASE IS PEGGED TO INFLATION. This means that elected officials in Boston can avoid responsibility for future tax increases. The tax on gasoline will automatically increase, and the legislators can say, “I didn’t do that–it was automatic.” Governor Patrick vetoed this bill–therefore he can claim that he did not vote for the tax increases in it (of course he knew that the Democrat legislature would override his veto and still be voted back into office in the next election).

Until the Massachusetts voters begin to vote the current legislators out of office, they can expect more of this kind of shenanigans. It’s time to wake up and put people in office who actually care about the burden they are placing on taxpayers.

 

Enhanced by Zemanta

How Much Is Enough?

Will there ever come a time when the government feels that it has enough money to run the country, the state, or your town? I am beginning to wonder.

Holly Robichaud at the Boston Herald posted an article today about the tax bill passed by the Massachusetts House yesterday. While reading the details of this bill, please keep in mind that state revenue is presently $575 million above predictions. So what did the House do? They raised taxes!

The article reports:

How much are taxes going up?  Bacon Hill says $500 million.  Do you trust them?  $500 million is just the first year.  This is a tax package on steroids.  It gets bigger every year with no end in sight. 

Bacon Hill indexed the gas tax to inflation which means it will increase every year.  This year it is an additional 3 cents.  Next year it will increase again and the following year and the following year and the following year…..  It is the gas tax increase to infinity and beyond. 

Bacon Hill also tied the tax on underground storage tanks to inflation.

The cigarette tax is going up $1 per pack.  This is a direct attack on poor people. 

Unless the voters of Massachusetts change the way they vote, we can expect to see more of the same.

Enhanced by Zemanta

Avoiding The Negative Political Consequences Of Raising Taxes

Marty Lamb, a Massachusetts small business owner, posted an article at the Holliston-Hopkinton Patch yesterday about the coming hikes in the Massachusetts gasoline tax. The article was entitled, “To Infinity and Beyond” and stated the following:

Just within the last week, the price of gas has increased 10 cents per gallon

The new normal is over $3.50 per gallon. This high price is stretching family budgets.  Whether it is filling up at the pump or buying food trucked to the market, we are getting hit hard in the wallets.

The situation is going to get worse if Beacon Hill lawmakers have their way.

Right now, a committee consisting of 3 House and 3 Senate members are meeting to negotiate the differences between the two tax bills. It is not a matter if the gas tax is increasing it is a matter of how much and how often.  

What do I mean?  

If the tax package is signed into law the gas tax will be forever linked to inflation.  It is the gas tax increase “to infinity and beyond.”  In other words, there will be an automatic gas tax increase every year. And the legislature never has to vote to raise it again.  How convenient.  But for the rest of us, it means taxation without representation.  

There is no need for higher taxes.  This week’s report from the Auditor shows close to $100 million in fraud just within the Department of Transitional assistance (welfare).  The crime lab scandal is costing us $332 million. Overall it is estimated $1.8 billion of waste.  

I urge readers to call the State House (617-722-2000) and express their opinion on the gas tax.  There is no need for the tax increase and it should not be automatic.  Taxation without representation should not be tolerated.

If the bill being discussed is passed, the State of Massachusetts can automatically raise gasoline taxes without a vote by the legislature. Therefore, no one has to go on the record and be held accountable for the tax increase. This is a liberal lawmaker’s dream and a taxpayer’s nightmare.

Enhanced by Zemanta