Still No State Budget Agreement

By: Associated Press Email
By: Associated Press Email

Michigan's government budget stalemate continued Thursday, but behind-the-scenes talks continued toward a possible vote by state lawmakers on a tax increase proposal.

The state's new budget year begins Oct. 1. So far, there is no agreement on how to fill an estimated deficit of up to $1.8 billion.

Gov. Jennifer Granholm and many Democrats have pushed for a tax increase to help erase the deficit and boost services including education and health care. Republicans have been resistant to voting on a tax increase without first doing more to cut state government spending.

Democrats in the House have introduced bills that would increase the state's income tax rate from the current 3.9 percent to 4.6 percent. If lawmakers go that route, the increase may be temporary until voters have a chance to weigh in the issue.

Voters could be asked as early as November on whether to raise the state's sales tax from the current 6 percent to 7 percent. Another possibility for voters might be a graduated income tax, which would charge higher rates to people who earn more money.

But lawmakers were running out of time to get either of those options on the November ballot. The deadline for doing so is this week, and two-thirds of both the House and Senate would have to vote in favor of putting a proposal on the ballot.

Michigan is several weeks behind its normal timeline for adopting a new state budget.

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  • by william Location: adrian on Sep 7, 2007 at 09:02 AM
    more compainis hireing would help. more jobs all over mich would help.more jobs the more who can be taxed.6 cents to 7 cents,could be alright.very well off incomes paying a little more than some,depending who's toes get stepted on might work. keeping businesses happy enough they do't leave,getting everyone to do there part in many ways,well it is a big problem.cut in reasonable ways not to cause more proverty,letting our govenor know things from all points of views.after all think what mich was like when she took really can't expect a overnight mircle,she's not god.But she is who the people elected,whom can do so much better please step forward with your answers,God has not,nor will he ever run for office.remember ONE NATION UNDER GOD WITH LIBERTY AND JUSTICE FOR ALL.and our money says,IN GOD WE TRUST. So guess we all start PRAYING.
  • by Peter Location: Lansing on Sep 7, 2007 at 07:14 AM
    The voters will not be asked in November, the House and Senate missed that window.
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