Tax Hikes?

By: Capitol Correspondent Tim Skubick
By: Capitol Correspondent Tim Skubick

Michigan lawmakers, anxious to get out on the campaign trail this summer, are trying to wrap up the state budget but to do that they must find some way to close a $400 million hole in the budget.

So far Gov. John Engler has been unsuccessful in his last minute efforts to push through a 50 cent a pack increase in the state tobacco tax. If enacted the state levy on smokes would go to $1.25 a pack.

Democrats have refused to put up any votes on the plan saying it is a "piece meal" approach to solving the budget mess. They want budget cuts and a freeze in the Single Business Tax rollback.

Republicans so far disagree with that suggestion producing a stalemate on fixing the problem.


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