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Another Obstacle At The Capitol: The Rush To Repeal The Service Tax Save Email Print
Posted: 5:43 PM Nov 20, 2007
Last Updated: 8:56 PM Nov 20, 2007
Reporter: Lauren Zakalik
Email Address: lauren.zakalik@wilx.com

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"We all understand the worst thing that could happen to the state is the service tax," says senate majority leader Mike Bishop (R-Rochester).

A rare agreement amongst many state Democrats and Republicans is the newly-created and yet-to-be-implemented 6 percent service tax should be repealed.

But legislators now have only 11 days, many of those over the Thanksgiving break, to come up with a replacement for the 614-million-dollar hole the cancelled tax would leave in the budget.

"The house sent over a plan that just wasn't workable," Bishop says. "We're doing the right thing by standing up to mammoth taxes."

Tuesday, the Republican-led Senate passed a replacement for the service tax that relies solely on revenue from the new Michigan Business Tax.

But Senate Minority Leader Mark Schauer says their temporary plan leaves a $400 million hole in the budget, which Republicans say isn't true. Schauer warns the plan would warrant huge cuts to health care, education, higher learning and other areas.

The political backpedaling is frustrating business owners, who can't plan their finances accurately because they don't know if they'll be paying the tax or not.

The treasury is sending out letters to businesses alerting them of the tax that is set to begin December 1st.

"If I were a business, I'd be expecting that tax to go into effect," Schauer says. "There's no policy direction at all."

Just because the House and Senate have both agreed to repeal the tax, doesn't mean it's a done deal.

They need a replacement everyone can agree on, and in true Michigan legislature form, that solution might come down to the wire.

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Posted by: Rosemary Location: Burton on Nov 24, 2007 at 04:33 PM
I have a simple solution, why doesn't our government just raise the sales tax in MI to 7%, and add a 5 cent tax increase on gasoline. It would not only cover the gap, but it would creat a surplus. This way everyone will be paying, not just the businesses that provide services.

Posted by: stan Location: coldwater on Nov 24, 2007 at 10:16 AM
and if they repeal this tax,what tax will follow that hurts bussiness again.mich gov just don't get it.is TAXES the only thing the greedy ones know,is it the easy way out for them.as many of us know the answers are simple.make deals compaines can't refuse so they will bring factories and all sort of jobs here to mich.then work on keeping them here.but that would require alot of changing things,like taxing,and doing away with all the bull crap that has made compaines leave.yes hard work with the BRAIN.or do they not have brains.we all are wondering at this point.is this what we get from people whom have usually had money all there lives?I really don't understand what kind of education they got.they have a piece of paper saying college educated.a one word vocabulary,TAXES,how stupid.first thousand of JOBS,people WORKING.LESS TAXES ON BUSSINESS,better WAGES,better ECONOMY,PEOPLE PAY TAXES.the gov is so BACKWARDS. all the problems in mich cannot be fixed without JOBS for ALL.

Posted by: bev Location: sturgis on Nov 23, 2007 at 12:43 PM
does our gov read the comments,I hope so.why do they continue to make it so hard on bussiness.none want to come here,many don't want to stay.is making new taxes and raiseing taxes all they know?if taxes are the main reason factories and differnt bussiness don't want to be in mich,then what is the gov doing?are they so educated they don't understand what will change mich around?what are they doing to the so many now that have became poor.kids are suffering,shouldn't that be enough to get thousand of jobs here?do not they understand what people are going through?because they don't suffer over anything because they get paid very well by tax payers money.people can not surrive without jobs,or buy without jobs,or can we keep paying taxes without jobs.jobs will not come here because of the way the state gov is and all the high costs to be here.what is wrong with the mich gov to allow this to happen.they just can't get with the program.no matter what it takes,GET JOBS HERE!thousands.

Posted by: leon Location: jackson on Nov 22, 2007 at 08:53 AM
will any money be collected from this if they don't get it stoped in time?will they still be able to collect any money?and if so we probably won't see any refunds.but just one month would bring in alot.but like usual they just don't get what would solve all the problems. thousand of jobs.but they surely would have to change alot of stupid laws,unfair taxing,and lower taxes lower than other states.anything to make compainies eager to come here.the better the deal,the higher the hourly pay could be.more working,more tax money comming in,more people getting back on there feet,being able to buy more,economy goes back up.oh but this is so easy,and it would mean alot of work on the gov part.WORK and using there brains for something more than a hat rack.but eventually,when things are doing so well,they could have more time off.but this would mean everyone would be happy,they couldn't handel that.and it is way to simple for the gov to understand.no brains,no pain.see how they are.

Posted by: matt Location: monroe on Nov 21, 2007 at 05:10 PM
BRING THE JOBS BACK!!! SEEMS TO BE AN EASY SOLUTION!!! The more you sqeeze this state, the more people will leave it, I'm contemplating to be one of them, I keep standing up for it, but aint to much left. Kinda like a sponge, eventually even that will cease to produce water!!!

Posted by: bobby Location: detroit on Nov 21, 2007 at 01:01 PM
a government shut down would of caused many things to shut down,there would of been no assitance to the poor.all checks stoped.schools would of eventually shut down.roads would of went unattended,probably no road crews to take care of winter problems,many checks to gov sub.housing would of stopped,many more would of been homeless.health programs for the needy would of stopped.this could of resulted in death for many.many social programs helping with heat ect would of stopped.as many services people need to get by in mich would of just stopped.believe me this would NOT of hurt the high paid gov.but many would of lost there jobs,and unemployment may not of been available.this would of not got them out of office.but the people would of suffered to no end.the trickle down effect would of been muder.and they would of got away with it.there friends the law makers protect these gov people very well.try to get them recalled.HA HA.we the people,they have us where they want us !

Posted by: Pam Location: Jackson on Nov 21, 2007 at 10:39 AM
We would have been better off with a governmental shutdown. No elected official wanted that option, since they would have been removed from office for being idiots. I know I am not going to vote for any incumbent in the next few election cycles. Where are the third party candidates who have morals and ideals that would benefit society?

Posted by: jim Location: flint on Nov 21, 2007 at 09:46 AM
our mich gov seems to failed to many times.many are finding that they can't pay there bills,eat,and drive,heat there homes,and the list goes on.our gov knows the needs of jobs ALL over mich,but yet they will not do anything to get jobs here.or try to keep the ones that are here.they have done things that caused many to go to other states to buy things,giving them money.will they lower bussiness taxes?oh no.just to greedy.what do compaines want to come here?they will not give it,and many have left.how stupid.there way or no way.cutting everyones throat.but they aren't going without.we pay them enough to get by just fine.as they don't earn a bit of it.jobs! put people to work,then they get the economy back up.less taxes compaines have to pay,the higher wages they can pay.people get off social programs.compaines give better insurances.so simple.but our greedy gov won't do this.so we just go futher behind and more suffer.so much for highly educated people.no common sense.

Posted by: John Location: Lansing on Nov 21, 2007 at 09:06 AM
Once again the elected idiots are doing their best to prove the Michigan is #1 in stupidity. The arguement June made about increasing the overall sales tax is typical rhetoric that 'rich' people can afford more than poor folks. Well an increase of 2% on the sales tax will mean more to lower wage earners and impact their standard of living. Gas, cigarettes, merchandise, school clothes, etc are still basic living necessitites..well other than cigarettes. The sales tax is 100% dedicated to fund schools (remember prop A) and increasing will not adress the issues with heathcare and prisons. How do you attract tourists with higher taxes?? There are ways to address the structrual issue, but Michigan has elected morons to decide how to fix it. Good luck MI, and boy DeVos does not look so bad now, in fact anyone would be better than what we have.

Posted by: June Location: Stockbridge on Nov 20, 2007 at 06:09 PM
NO to the service tax - increase sales tax will be fair to all, the wealthy buy more therefore will pay more, including the politicians! Michigan would benefit from tourists as do other states!

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