Businesses in Michigan would pay no taxes and individuals would pay only property taxes and a higher sales tax under a proposal that could be on the November 2008 ballot.
Michigan Fair-Tax Association Director Roger Buchholtz says legislation is being drafted that could put the matter before voters next year.
Two-thirds of the House and the Senate would have to approve the proposed constitutional amendment for it to go on the ballot.
If the measure fails in the Legislature, the group plans to collect voter signatures to place it on the ballot.
The Kalamazoo businessman says the change would boost Michigan's business climate.
He also says it would raise the same amount as current taxes for the general and school aid funds.