Tax Increase, Budget Deal Move A Step Closer

By: Tony Tagliavia Email
By: Tony Tagliavia Email

Michigan House members went home for the night Monday after House Speaker Andy Dillon told reporters he has some Republican votes to pass a tax increase.

So far only Democrats have supported the idea. They say they want Republicans on board so it can get support in the Republican-controlled Senate.

The plan -- which could include an income tax increase and a new sales tax on services -- has not been put to a vote yet.

"We need to meet with them and find out when they're ready," Dillon (D-Redford Twp.) told News 10.

The speaker says both Democrats and Republicans in the House are going to want some indication that the Senate will consider a tax increase before those House members vote to raise taxes. It's a vote that could upset their constituents and spark recalls in some cases.

The Senate took its own action Monday, passing a so-called continuation budget giving the state an extra 30 days to figure out its finances beyond the October 1st deadline.

Democrats called it irresponsible, but Senate Majority Leader Mike Bishop says it's necessary.

"Even if we had a deal in place today, we don't have time to get it done," Bishop (R-Rochester) said.

The vote came hours after Gov. Jennifer Granholm said she'd veto any extension of current spending levels.

"Kicking the can down the road for three more months to allow will not solve our problems," the governor said. "It will just push it further down the road."

So with the two separate houses taking seemingly separate actions where do we stand? The Senate could vote on budget-balancing plans this week as the House pushes forward with the speaker's deal.

Whichever takes action first will send the plan to the other chamber.

But all indications are that some kind of tax increase will be part of the solution.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Carol Location: Lansing on Sep 18, 2007 at 04:33 PM
    Lets see, why is the state remodeling offices, moving employees to temporary locations to do the remodeling and then moving them back? How much is that costing. Gee when I don't have the money I don't remodel my home. There is so much waste and it is these types of issues that needs to be looked at first and NOT raising taxes. Give we the people who elected these fools the budget and I bet we could balance it in a heart beat. We don't have our special interests that we are trying to protect involved in the matter therefore, we can see the waste. That is also part of the problem. Keep running this state into the ground people and pretty soon you will not have anyone left to tax.
  • by fredric Location: holt on Sep 18, 2007 at 04:02 PM
    what are the tax raises for,to cover what. if they don't raise taxes,where will the money come from for what?all I know there pays won't be cut,it won't effect them one bit.no money coming in -no money going out.what do people want them to cut or what programs?go jim
  • by David Location: MI on Sep 18, 2007 at 02:40 PM
    If Granholm truely wanted to avoid a government shutdown then she would allow the extended period being voted on. Granholm has driven this state into submission and we are left adrift.
  • by Michelle Location: Lansing on Sep 18, 2007 at 12:43 PM
    Why should the governor allow a continuation budget? Where wwere the legislators this summer?? Why were they taking vacations and golfing instead of working on the budget?
  • by Marcus Location: Morrice on Sep 18, 2007 at 12:32 PM
    It's good that the legislators voted to rid ourselves of the single/small business tax.....unfortunately, not to replace it with ANYTHING is the most irresponsible behavior imaginable....Why is it that the Tax payers have to fund all the rediculous mistakes that the legislators continue to make....let 'em close down the state government!!! We only need a part-time governing body anyway... Want an economic recovery? Raising taxes in this state will kill any chance of that happening! That'll keep new grow at bay.... Oh yeah, and while you're at it...vote yourself a raise, then bitch that we have to raise taxes..... Whew....have we elected a bunch of jerks, or what?????
  • by fred Location: st.johns on Sep 18, 2007 at 11:51 AM
    what will happen with no tax raises? figure that one out .then post it.I'd like to know.what cuts will they make and whom or what will it hurt. let me know. no ones tellig thoes facts either way.the word TAXES, what do they help,or hurt.what are the long term effects of both things?we all need to know this.or are our throats going to be cut again? the gov people aren"t loosing there lifestyles either way they go.tell the answers please.
  • by pam Location: Jackson on Sep 18, 2007 at 07:02 AM
    Even the Governor does not want to continued spending free for all. She wants to reduce the overall budget.
  • by pam Location: Jackson on Sep 18, 2007 at 04:52 AM
    If there was a deal, why has things not passed. The state workers should expect to working the unemployment. Wait, those offices will be closed.
  • by John Location: Jackson on Sep 18, 2007 at 04:19 AM
    Granholm is going to get her tax increase come hell or high water and the voters be damned. If she would cut some state entitlement programs instead that would go a long way in solving this budget problem, but she cant go without keeping the giveaways she promised at taxpayer expense. If she wants to be so charitable, why doesnt she give away her own money instead of the taxpayers?
  • by Jim Location: Grand Ledge on Sep 17, 2007 at 10:00 PM
    Those crying foul over a tax increase seem to have forgotten recent history. Take a lesson in what James Blanchard did when he became governor. Taxes rose temporarily until the budget crisis was fixed. Chip in and do your part to help out, you crybabies. Listen to what former governors Blanchard and William Milliken say - they know way more than you do.
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