Ann Arbor Area Community News
Tuesday’s Detroit News had a nice trio of articles on gas prices, including tales of irrational action on the part of both the “average driver” and at least one Michigan legislator.
Michigan gas prices his record high; no relief in sight notes that the statewide gas price average hit $2.136/gallon on Monday, a (non-inflation adjusted?) record high. High gas prices curtail spending discusses the reaction to this,
Record gas prices are siphoning money out of Metro Detroiters’ wallets that could be spent at restaurants, grocery stores or other businesses.
The article comments that consumers have “no choice” but to keep buying the same amount of gas, dismissing discussion of alternatives,
Families on tight budgets have no choice but to cut back on other spending when they pay more to gas up their cars. But, in contrast with the oil shortages and price spikes of the 1970s, most people are able to get by without changing their lifestyle, said Central Michigan University economics professor Phil Thompson.
According to Troy legislator supports limit on gasoline sales tax, Michigan Representative Gosselin (R-Troy) has a plan for helping consumers out. Not by supporting mass transit, compact development, or better fuel efficiency, of course, but by capping the amount of sales tax collected on gasoline:
Under the proposal, the sales tax could only be collected on gasoline that costs up to $2.30 a gallon. If the price moves higher, the 6 percent sales tax would not be collected on the excess.
How would Gosselin feel about more long-term fixes, like mass transit and changes to land use? The DetNews voter guide from last fall notest that he’s against them:
“Michigan needs to spend its road tax dollars more wisely. We need to stop stealing 10 percent of gas tax and license fee revenue and giving it to wasteful mass transit systems, which are often corrupt as well!”
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