State of Michigan Officially Blames the President
I visited the State of Michigan website yesterday to collect some information. Before I could get to the information I needed, I saw this prominently displayed headline on the home page: "Sign Now to Lower Gas Prices."
I had to laugh, then I had to calm myself to keep my blood pressure down. What does a government know about lowering prices? But like the wary consumer taking the bait on the late-night infomercial, even though the consumer knows better, I decided to go ahead and click the link anyway.
No surprises here - President Bush is at fault, according to the official view of the State of Michigan. At least they left Dick Cheney out of it.
Michigan drivers are again facing the reality of $3-per-gallon gas - it’s time for President Bush and leaders in Washington to stop watching and start protecting us from the skyrocketing cost of gasoline! It's just not right that big oil companies should be allowed to hold customers hostage to outrageously expensive gas; they rake in billions in record-setting profits while consumers are left with no option but to pay ever-increasing prices.
Consider these facts:
The average price for unleaded gasoline is 64 cents higher than the same time last year.
ExxonMobil reported a $36.1 billion in profit, making it the largest corporation in the world and larger than the next four companies on the Forbes 500 list combined.
Oil prices have increased 240 percent since George Bush’s inauguration in January 2001.
Nearly eight months ago, I and a group of concerned Governors urged the President to take action to bring down the sky-high prices of gasoline at America's gas pumps. We urged the President to bring the price of gas down for consumers by capping oil profits and using federal anti-trust laws to prosecute any companies pocketing extra profits in the wake of disasters like Hurricane Katrina. We also asked Congress to investigate energy profiteering and pass legislation requiring oil companies to refund excess oil profits to consumers.
Pretty slick, I thought. The article forgot to mention that the EPA mandated all Midwest states add expensive ethanol which has doubled in price since last year. It forgot to mention the effects of inflation, which during election season is always prominently touted (typical line sounds something like "you aren't really paying any more for gas than you did in 1978, adjusted for inflation").
It forgot to mention that the Michigan Tax on gasoline is 19.875 cents per gallon - plus there sales tax of 6% (approximately 17 cents a gallon at prices this morning), plus the Federal government share of the pie at 18.4 cents a gallon. This translates into about 55 cents a gallon. At the $2.87 per gallon price I saw this morning, the tax burden alone on gasoline is almost 20%!
Some other facts the State of Michigan conveniently ignored:
Estimated at 10.8% of income, Michigan’s state/local tax burden percentage ranks 16th highest nationally
Michigan levies a Single Business Tax (SBT), which is a modified value-added tax (VAT), which screws the Small Business Owner running the gas station, which increases the prices.
Michigan levies a 6% general sales or use tax on consumers, just above the national median of 5%.
There is so much misinformation, I am surprised the State of Michigan actually put this on their website. No mention of the damage Hurricane Katrina did to the oil refining capacity of this country. No mention of skyrocketing prices on barrels of oil - prices dictated by Middle East countries and Venezuela and the Market. No mention that refineries haven't been built in this country since Richard Nixon was President.
I have a simple question: why should I sign a petition going to President Bush when my own elected representatives have done nothing to reduce the cost of gasoline?
Tags: Gas Prices