Thursday, March 5, 2009

Sensing A Pattern...

Businesses endorse 25-cent gas tax hike
Massachusetts business groups yesterday endorsed a 25-cent increase in the state gas tax, a more aggressive hike than Governor Deval Patrick's 19-cent request, saying that the state needs to move even faster to fix its ailing network of roads and bridges to encourage a strong business climate.

The business leaders compared the current push for a transportation overhaul to the effort that led to the state's new comprehensive healthcare law, saying that the costs to motorists and businesses are worth it to fix chronic money shortages that have plagued the system for more than a generation.
Hmmm. There's got to be more behind this story. There's no way on G-d's Green Earth a company or companies are going to go on record as stating "We are actively working to screw over our precious consumers in today's economy". The story also reports that:
"I've been involved in politics in Massachusetts now for 25 years and I am honestly not sure that I can remember another time where the business community came out in such an organized way on behalf of a tax increase," said Marc D. Draisen, a former Democratic legislator and executive director of the Metropolitan Area Planning Council, which advocates a 29-cent increase.
To recap:
  • Cadillac Deval: $0.19/gallon tax increase

  • Greater Boston Chamber of Commerce: $0.25/gallon tax increase

  • Metropolitan Area Planning Council: $0.29/gallon tax increase

See a pattern? Yeah, the gov's increase doesn't seem so bad compared to the other ones out there, doesn't it? Kinda like when state firearm permit fees were scheduled to more than double in some cases, provoking a fierce reaction from local groups and bringing unwanted attention to the discriminatory MA permitting process right around the time of the Heller decision.

Then the gov dropped the hike request, and it was treated as a victory.

What got lost in that fight was the drive to actually lower the fees - MA has, by a large margin, the highest gun permit fees in New England. It's also the only state that requires a permit to simply own a firearm - IOW, if you don't drop the hundred beans on the permit, you can't own a gun. Period. GOAL was mounting a pretty fierce drive to get the legislature to look at lowering the permit fees to be more in line with neighboring states when Patrick proposed the increase.

Switch gears, change tactics, go on defense rather than offense. End result? Fee stays the same, rather than undergoing scrutiny and running the risk of getting lowered or abolished in some cases (i.e. if some enterprising 2A lawyer were to apply the Heller decision to MA and argue that charging any sort of fee to exercise one's Second Amendment rights is a blatantly unconstitutional process...). Momentum = lost.

Buried in the article was this nugget:

A higher gas tax might also reduce the pressure on lawmakers to raise corporate taxes - which some of the groups have sought to reduce or hold steady.

Hmmm. A little quid pro quo, perhaps? The business groups appear to push for higher gas taxes, Patrick's plan seems more reasonable, and they avoid a rise in corporate tax rates. Nah, that would be horribly cynical of me to think that there would be such collusion and arm twisting among our ruling elite and corporate masters, no?

Gotta start drinking some Sarcastro-B-Gone with my morning java...

That is all.

5 comments:

TOTWTYTR said...

This had me scratching my head too, JayG. The business community is almost permanently in "No new taxes or hikes" mode and suddenly, it's "Gee, you should raise that more."

I'm going to guess that businesses can deduct gas prices from THEIR taxes and of course even if they can't they can pass the increase on to the consumers.

There is something seriously wrong in the water in this state. I try not to drink it. Maybe that's why Deval is so against bottled water.

RW said...

Yes, businesses can claim a credit (or deduct, I forget which) mileage used for business purposes. Whenever you or I drive for the company, we get to put it on one of those expense reports....well, the businesses turn around and compile them all together and then turn it into the gov't for a business expense credit.

A corp. tax hike, though, is an immediate cost that is passed along to the customer - every red cent - via price increases, and cannot be deducted.

So, yeah, from a business standpoint, they're doing the smart thing and saving money for the company.

Oh, and keep in mind that the Democratic congress - the one who joined Obama in being all for the right kind of offshore drilling so we can start expanding our options when the price of oil rises again in the future - scrapped offshore drilling shortly after being sworn in. So, when we're back to $4/gallon in the future, keep in mind that they'll still be using that "it'll take 10 years" line because they kicked the can down the road. AND you guys in Mass. will be paying more than 20 cents extra, to boot!

dr mac said...

Just following the lead nationally. Excuse me while I buy stock in GE and NBC.

Obama brown tongues should make out like bandits.

RW said...

Let me just add that in my own personal life, Atlas is starting to shrug. Not "thinking about it", not "daring to", but at-this-moment is shrugging.

And I have three words for any retort: no paper trail

Anonymous said...

Let's see -- the poor schmuck at minimum wage takes it on the chin at the pump. The rich guy doesn't care and the "business" groups think that's okay? That, plus increased tolls have a disproportionate effect on low wage earners. We are from the government and we are here to help you!