Michigan Legislator Wants To Create A Gas Entitlement

gas-prices-june-2011

This is the worst sort of “bread and circuses” politics. It’s not about sound policy – this legislator is silent on what this entitlement for gasoline would cost the taxpayers – but rather about who can promise the most goodies paid for by other people.

State Representative George Darany would like to give every Michigan resident making $100,000 or less a state subsidy to help cover the cost of gas.

Darany, a Democrat from Dearborn, introduced House Bill 5476 in March. According to Michigan Votes, the bill would “give individuals with annual incomes below $50,000 a per-vehicle fuel subsidy of $100, payable in the form of a ‘refundable’ state income tax credit. A $75 per vehicle subsidy could be claimed by those with incomes between $50,000 and $75,000, and a $50 per vehicle subsidy for incomes between $75,000 and $100,000.”

According to the article, economic analysts are predicting that this legislation would cost Michigan taxpayers some $300 million per year. That in a state that has over $125 billion in debt obligations.

But setting the budget aspect of this aside, all this gas entitlement will do is drive gas prices even higher. A household getting a $75 fuel subsidy is likely to do $75 more worth of driving with the “free” gasoline. This will drive up demand for gasoline that, in turn, will drive up prices.

It would work not unlike the phenomena we’ve seen with tuition and fees at universities. Government subsidies haven’t made college more affordable. They’ve simply created a higher education bubble, whereby subsidized demand only drives prices ever higher (something the politicians usually use as an excuse for ever-higher subsidies).

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • SigFan

    Democrats, buying votes with other people’s money – one tank of gas at a time.  The people of MI are starting to understand the devastation their liberal politics has wrought on them if my family there is any indication – unfortunately it may be a case of too little too late for them.

  • igx

    It worked for Venezuela. 

    No one is going to give a damn about “subsidizing” Big Oil if supply and jobs are increased. 

  • Sal

    “No one is going to give a damn about “subsidizing” Big Oil if supply and jobs are increased.”

    Tell obama to let the Keystone XL pipeline go through.

  • igx

    My amateur understanding of theBig Oil “subsidy” is it’s just about depreciation rates on gear to get oil out of the ground. I mean who cares as long as this valuable commodity gets a supply increase? it beats subsidizing the parasites in the Sierra Club. 

    • http://sayanythingblog.com Rob

      The “subsidies” they’re targeting are these:

      1) there is a credit for oil companies (or, indeed, any country) which earns revenues overseas and pays taxes on those revenues.  The companies are allowed a credit in the amount of foreign taxes paid.  Without this credit, American businesses would be double-taxed.  Without this credit, American companies (including oil companies) would be at a serious disadvantage.

      2) The section 199 deduction allows oil companies to deduct 6% of revenues earned from things they produce/extract.  Again, just about every corporation in America taxes this deduction, and they get it at a 9% rate (the oil industry gets the lower 6% rate).

      Neither of these are subsidies.

  • Ffbeerman

    That is almost as absurd as a $2.2 BILLION MBT cut for business.

  • ellinas1

    Consider this as a reduction in the gas tax.
    It is not “other peoples money” as Sigfan would like you to believe.
    The recipients of this have to to working and earning a wage.
    God forbid working people get some of their tax money back. What is wrong with you cons?

    • Econwarrior

      It’s not a reduction in the gas tax, it’s a general expense for all taxpayers to benefit only some taxpayers.  It’s just another Marxist redistribution scheme based on class envy politics.
      If you think people should “get some of their tax money back”, why not lower tax rates and not take it from them in the first place?

      • ellinas1

        Dick status.

        • Jfisher17

          Pussy status.

          • ellinas1

            Can two adults talk without children interjecting themselves in adult conversations?

          • Econwarrior

            Take your thorazine, Daffy.  You have a long way to go before you qualify as an adult.

          • ellinas1

            Keep on following me around like a horny hen.
            I told ya before, and I’ll tell you again:
            I wouldn’t touch you with a 10 foot wooden pole, nor fuck you with Onslaught’s dick.
            Bitch, stop following me around.

          • two_amber_lamps

             http://img.chan4chan.com/img/2009-11-29/1259463626469.jpg

          • ellinas1

            No dick for you.
            No matter how much free candy you offer me.

          • Onslaught1066

             Testy little greek turd aren’t you?

            That is so cute.

            You know, if you weren’t porking 12 year old boys in you basement, you might actually have a chance at being a real human being, but as that is clearly not the case…

            Methinks the lady doth protest too much.

          • ellinas1

            No, not testy at all.
            The bitch posting and posing as econwarrior, formerly known  as robert180, has in the past, via private e-mail propositioned me. He/she offered $1000.00 dollars if I allowed him/her to felate me.

          • Onslaught1066

             Methinks the lady doth protest too much.

          • ellinas1

            ZZZZZzzzzzzz!

          • Onslaught1066

             Ain’t it cute how they get to experience second childhood before they get too old to change their own diaper.

          • mickey_moussaoui

            Ironic, wouldn’t you love to “interject” yourself into a child

          • ellinas1

            Pot shot Mickey.

          • Onslaught1066

             Bulls-eye, pederast.

          • ellinas1

            ZZZZZzzzzzz!

          • Onslaught1066

             Oo’ it’s tired.

            He should really learn to stop sucking his thumb, he’ll ruin his dentures.

          • ellinas1

            ZZZZZzzzzzzz!

          • Jfisher17

            In your case, no.

          • ellinas1

            I thought so, you spoiled brat!

    • Jfisher17

      Wait- I thought all those folks were gonna buy plug-ins to combat the high gasoline prices? “God forbid working people ( so one one welfare, right?) get some of their tax money back.” Ellinas1 takes Dem hypocrisy to new heights by now saying a tax cut is ok.  So we can count on you to support federal income tax cuts as well?   

      • ellinas1

        You thought wrong.
        I said working people.
        Stop projecting and making up stuff.

        • Jfisher17

           “You thought wrong.”  Well, I didn’t really think wrong, because it was Obama that told me about the plug-ins, and everything he says is true! I said working people, too (“no one on welfare” would mean working people, no?)  Besides your post making no sense, again, are you for tax cuts or not? Or are you still taking Dem hypocrisy to new heights?

          • ellinas1

            I said what I meant, and meant what I said.
            I f you read the other posts carefully, it is you the right wing wingnuts that are opposed to this tax rebate for the working people.

  • mickey_moussaoui

    I’m retired so I’ll take the free gas but I’ll never vote democrat.

  • http://twitter.com/Dakota_Mel Dakota_Mel

    It won’t drive gas prices up because it’s a tax credit. IMO, that’s not enough of a direct link to prompt a change in a specific behavior.

    All it is, IMO, is a highly charge issue (gas prices) that some democrat is using (never let a crisis go to waste) to buy more votes. What’s really sad is that people will sell their souls for that $100 these days. But when you do that, what do you have left?

  • http://www.facebook.com/people/Willis-Forster/100002880371309 Willis Forster

    This would be the first step in gas rationing and gas stamps being issued in the same manner as food stamps and demands that the govt. take over the oil companies and staff them with political appointees. Mineral rights on privately owned land would be taken under eminent domain.

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