When you head to the store, six percent of what you buy goes back to the state. In her budget Thursday, Governor Granholm proposed lowering the sales tax by a half a percent.

"I think it's great saving money," Brad Krause said.

"I think it's great anytime we can have more money in our pocket to spend," Mark Mitchell said.

But on the flip side, Granholm is also proposing extending the tax to services.

"That's a bad thing because I fix computers and that would hurt my business," Mitchell said.

A sentiment a lot of small business owners reiterate.

"No more taxes," Greg Days said.

Days is the owner of Bill and Charlies Automotive Repair in Lansing. He said he'll have no choice but to pass that cost on to his customers.

"More taxes means less money people have to spend," Days said "So if I have to pass a 5 percent along on top of the labor, that just increases the bill."

Which could mean fewer people walking in the door said Geri Conklin.

"With the economy the way it is, people can't afford any more," Conklin, a hair stylist at Cutter's Point in West Lansing said. "I mean we don't even raise our prices because the last time we did, I had customers say I just can't do it anymore."

Kevin Lusby -- owner of Old Town Barber Shop -- questions how it all would be monitored.

"I mean who's going to regulate it?" Lusby wondered.

It puts an extra burden on small business Lusby said at time when a lot of people are struggling.

"It's hard enough for the small business man as it is," he said, "whether you're a beautician, a tow truck driver or whatever, it's hard enough."

The State Treasurer estimates it would cost the average family with a $50,000 dollar income about $140 per year more.

This tax on services would not apply to health care, education, construction, or business to business transactions.