Everyone is talking about the proposed fuel tax increase of 45 cents a gallon that Governor Whitmer has proposed.  Even without that tax increase Michigan is looking to pull in an additional $1.2 billion in taxes to the state treasury.

The Michigan Capitol Confidential new site is reporting that Michigan budget officials are projecting that Michigan will collect an additional $1.2 billion dollars in tax revenue before any proposed tax increases will take effect.

These additional tax dollars that will flow into Michigan’s treasury will come from Michigan’s improving economy which generates these additional tax dollars.  As many of us state; you do not need to raise taxes to raise the amount of tax dollars flowing into the state coffers, just enact policies and attitudes that increase business in Michigan.

Governor Whitmer’s proposed 2019/2020 budget totals approximately $60 billion dollars.  That $60 billion dollars is made of $36.11 billion in spending next year, which actually starts on October 1st, will be covered by state taxes and fees and the remaining $24 billion dollars will be coming from the federal government.

The $36.11 billion in proposed state spending is a $3.05 billion increase over the initial 2018-19 budget.  The Michigan Capitol Confidential new site stated that this $3.05 billion increase is:

a 9.2 percent increase partly paid for by increases in those taxes. But even with no tax hikes, current projections show the state will take in $1.6 billion more next year, a 4.9 percent increase.

The question I have is if the state of Michigan will have an increase of $1.2 billion dollars in tax revenue as compared to the last fiscal year then why would we have to increase gas tax revenue, just use the $1.2 billion to cover increase infrastructure cost.

I can only assume the simple answer to that question is they are more than likely spending those additional tax dollars on something else.  If we did not have those tax dollars to spend last year and we as a state did fine then what do you need to spend those tax dollars on in the new fiscal year that is more important than our “damn roads”.

I will leave you with this interesting factoid, the state of Michigan has increased our total Michigan budget, which includes spending covered by federal, state and local tax dollars over the last seven consecutive years.

Looks like we are looking at year number 8.

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