by Horatio Bunce
State Representative Susan Lynn has an email newsletter called the Weekly Wrap. She has recently taken time off from selling Gov. Haslam’s re-branding of Common Core in Tennessee to selling Gov. Haslam’s massive fuel tax increases called the IMPROVE Act, while ignoring the $2 BILLION surplus in over-taxation the state is currently burdened with. Rep. Lynn engages in some….interesting….mathematics in justifying Haslam’s fuel tax increase to declare it “pocketbook neutral”. Meanwhile the Transportation Department is, like the Common Core tactic that worked so well, simply renaming the massive tax increase measure the “Tax Cut Act of 2017“.
As Rep. Lynn insults our intelligence to a slightly lesser degree than “Boss” Doss, I’ll give her a pass as she is from The North™ and possibly thinks us dumb hillbillies would actually use Common Core Math. Since she asked, here’s my calculation on the “Tax Cut Act of 2017”. From her Weekly Wrap:
“Improve Act Close to Floor Vote
The House is close to voting on the Improve Act – I want to know what you think. Please email me to let me know.
“The Improve Act is revenue neutral and now pocketbook neutral for most people. It will lower the sales tax on food a full percent or $1 for each $100 you spend at the store. It will also lower the Hall Income tax and the Franchise and Excise Tax on factories. It will raise the gas 6 cents or if you have a 15 gallon tank – or .90 cents a fill up. If you don’t drive a gas vehicle, it will raise the a (sic) diesel tax and impose a $100 annual registration fee for an electric vehicle.”
So as long as gas prices do not increase and you spend 3:1 food vs. fuel, then it is “pocket book neutral” as long as “most people” maintain this ratio of course. I think “most” still means more than 50% even in Common Core Mathspeak. Of course, if you are buying diesel and need 15 gallons, it will cost an additional $0.12/gallon or $1.80. Oops, there went that pocketbook thingy. I guess I need to buy another $90 in groceries so I can “save” $0.90 to keep your fuel tax increase “neutral”?
But who cares about diesel anyway? What? Oh. The truck drivers. You mean the ones that deliver just about everything you buy at the mega-lo-mart, corporate welfare queens Amazon and FedEx……and the grocery? Yeah, those diesel trucks. Gee, I wonder what that 71% increase in the diesel fuel tax will do to that $100 grocery bill you used to have? Hint: they generally have larger than 15-gallon fuel tanks and lower fuel mileage than your personal car. What will the additional 33% increase in the gasoline tax mean for your grocery budget? I am wondering if the “leadership” Republicans are really this short-sighted or if they are only counting on you being easily fooled?
Conveniently left out of the discussion are the huge cuts to the Hall Income Tax ($102.1M) and cuts to Franchise Taxes ($122.3M), which when combined with the forecast reduction in sales tax on food give a total cut of $279.2M. In other words, the proposed $1 savings on your groceries sales tax only amounts to 19.6% of the “cuts” that we have to pass massive fuel tax increases to make “revenue neutral”.
Then we move on to use of the term “user fees” instead of that bad word “taxes” and explain that “user fees” should be paid by those using the roads, but then despite her photo at the top of the newsletter with “No Socialism” prominently displayed, we are taught that Some Socialism is acceptable when it comes to taxes (or they are not good Republican principles – kind of hard to tell which):
“Why lower some taxes while raising other taxes? Government uses fund accounting. Some taxes go into the General Fund and other taxes go into the Highway Fund. The taxes in the Highway Fund are all user fees – so if you drive – you pay for the roads, and you pay for them in proportion to how much you use them.
Paying for government by use of user fees is a good Republican principle. Much of government is not user fees but subsidized through the General Fund taxes because some things cannot be paid for by use of user fees. For instance, K – 12 education – most families could never pay all of what it costs to educate their children. TennCare too is a subsidy to the recipient – because the poor cannot pay for their care. Higher education is part user fee and part subsidized – students pay tuition (user fee) but they pay less than half of what their education actually costs – the tax payers through the General Fund subsidize the rest, and they also subsidize the buildings and maintenance for the buildings.”
Wow, for a second there, I thought a sacred cow was getting slaughtered. No, I guess not everyone can afford $10,000 each for their 1.8 kids to go to “free” government school when the average household income is less than $50k and 25% or more of us qualify for food stamps. But maybe we could figure out how multiple private schools provide an education for 40% less, rather than using the super-inflated “free” schools’ price to justify another tax increase. Here’s a little food for thought. Let’s say the “free” schools could cut only half the difference in price to a mere $8000/student/year : $2000 * 1,000,000 public school students = $2,000,000,000 EVERY YEAR.
And the higher education language…students pay less than half of what education costs. Gee, after 13 YEARS (plus any pre-K) of “free” education why should they start paying for it at all? This is more divide-the-people obfuscation since of course everyone paying for tuition (or not) is a taxpayer paying for higher education (and their 20% inflation rates). Even when the students graduate, they pay taxes the rest of their lives in Tennessee. Now that community college is “free”, just wait to see how much it costs!
“So the Governor hopes to lower several taxes in the General Fund thus eliminating the surplus and effectively shifting the surplus to the Highway Fund by raising the user fee taxes. The plan is for all of this reduction and shifting to be as revenue neutral as possible to as many tax payers as possible.
Truly, every person and family will have their own calculous (sic). So please, take out a pencil and paper and do your own math.”
After justifying this massive fuel tax increase with people buying $100 in groceries and not being able to afford public school costs, the lion’s share of the tax breaks are the Hall Income Tax and Franchise Tax folk. Is that really helping “most people” or “as many tax payers as possible”? Because the rest of you dupes will be paying more for your fuel AND more for the same groceries, which means….your grocery sales tax cut is ALSO REVENUE NEUTRAL.
STOP WITH THE LIES ALREADY! IT’S A TAX INCREASE ANY WAY YOU SLICE IT!