Led by Governor Snyder, Establishment Republicans and Democrats raised the gas tax and vehicle registration fees last year. The tax hike went into effect on January 1, 2017. You may recall that the gas tax will go up every year as it is adjusted for inflation.
Lansing elites said they desperately needed to raise taxes to fix our roads and bridges. However, according to the Mackinac Center, all the new tax revenues are not going to fix roads. The majority of the tax increase has been siphoned off for other "needs."
"The 7.3-cent-per-gallon tax increase motorists began paying on Jan. 1 and the 20 percent increase in the vehicle registration tax are expected to cost road users an additional $460 million this year. The money is dedicated to transportation funding — mostly to the roads, but also some for public transit.
Yet the state transportation budget will only have $160 million more this year for road repairs, not $460 million. That is because the Legislature shifted funds out of the transportation budget just as new tax revenues were coming into it."
Read the entire article here.
It looks like our characterization of Governor Snyder as Michigan's Biggest Joker was spot on.