Governor Granholm Proposes Expanded Sales Tax

By: Associated Press
By: Associated Press

Michigan Gov. Jennifer Granholm is proposing that the state sales tax be extended to consumer services and the rate dropped from 6 percent to 5.5 percent.

The roughly $550 million raised by the change would go to public education, then gradually shift toward decreasing business taxes.

The sales tax wouldn't apply to health care and social assistance, education, new construction, real estate and insurance commissions and services directly connected to business operations.

The Democratic governor on Thursday is presenting her spending plan for the budget year that starts Oct. 1.

Granholm also is proposing budget cuts, including requiring teachers and state employees to pay 3 percent toward their pensions and 20 percent of their health care premiums.


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  • by Anonymous on Mar 31, 2010 at 04:54 AM
    Once again Jenny at her best. Anything to make a dollar. Hope everyone has deep pockets.
  • by Carol Location: Michigan on Feb 28, 2010 at 02:23 PM
    WOW, this is crazy. She raised the taxes for smokes then stops smoking in bars. Nothing like shooting herself in the foot. If our state wants to save money, start drug testing these people that are getting free food cards. The druggies sell these cards to people at 50% of the value. Wake up and put the blame where the blame lies - our government that is turning our state into a communistic society.
  • by Anonymous on Feb 25, 2010 at 08:20 AM
    I say TAX alcohol.It is its turn.There are enough that drink booze it won't stop sales.It may keep some drunks off the roads.The new over 40% on tobacco didn't stop many smokers that can still afford.It did cause some to quit,making them better off health wise.Tax bad habits is better than taxing the little business guy barely making it.Hit the big guys and let them furnish the taxes needed to help Mich.Tax unhealthy foods.It may get parent to stop giving junk to their kids causing them to be fat and have health issues.There are things that can be taxed.The problem is the government don't know what to TAX.Get property taxes off homes.Find something else to tax,it may help people keep their homes,and keep their homes up looking better.Fix the way we tax businesses,it may attract more to Mich,so people can work and have money to spend in other areas.The wrong way of taxing has caused a lot of problems for Mich.I can't believed The Gov hasn't learned any thing.
  • by Anonymous on Feb 15, 2010 at 08:43 PM
    Your right,we have this country just like what we ran from and came here to start a better place.Now there is no where to go.There is a much bigger population than there once was in the other country,A large population can change things.If we want jobs that means stop buying from other countries.We had no say on them leaving but the USA upper government at the white House should of been smart enough to see the end results.Then we can see where many feel a socialist government could happen to the USA.In many years towards the future could it be communist?Or will the USA just fall and be a 3rd world country with nothing.It is up to the ones running this country?Or is it the people?In 70 years I have seen many changes.It is hard to see Mich as it now is.Out of hand government does that.Brings things to ruin.It will take a true miracle to bring change to this country.So are we living in the last days?Going through what the last book in the bible says?It is something we need to think about.
  • by Anonymous on Feb 15, 2010 at 09:42 AM
    Well it is income tax return time.Seen home prices?For what?Wanting every dime they can get.Government local to state needs property taxes.Sad way to many are jobless and can't take on a home.Sad many are living in poverty.Sad we have greedy government doing every thing to not take pay cuts.What they could tax,they won't,but what shouldn't be taxed they do.Does any one running this state know what most are going through.Guess not.Only the big money is listened to,not the little guy and middle incomes down.No wonder this whole country is going to the dogs.Michigan in the lead.
  • by anonymous Location: michigan on Feb 15, 2010 at 07:18 AM
    When we founded this country we were running from something correct? Well it has followed us here, and gotten a foot hold now. Old world aristocracy and they only want Two classes, a small (have it all), and a very large (have nothing). Thats why jobs are not coming to michigan. They have to destroy the middle class first.
  • by anonymous Location: michigan on Feb 14, 2010 at 07:24 AM
    Tax them from every angle, cap and trade, green police, ect.. untill the commoners riot, then clamp down hard with a police state. Nice people.
  • by Anonymous on Feb 14, 2010 at 07:02 AM
    Something will have to be taxed to maintain Mich.Or there will have to be thousands of jobs brought into Mich to put people to work.So taxes can be collected that way.How to fund schools with out raising property taxes?Or forcing millages on people who can't afford?We don't want a food tax.tobacco items are already taxed to high.Alcohol could be taxed more because it hasn't been done for some time.There is problems with drunk driving and minors drinking.Upper government should have wages cut,at least till this state is doing much better.We should be able to vote on a lot more things.The way the gov has cut things it is causing JOB LOSS.Not what we need more of.Many things have gotten out of hand in Michigan.It was a wealthy state at one time.Now a very poor state.The wrong type of taxing ruined many things and caused JOB LOSS.Why continue to do so.Don't our gov learn from past mistakes?How we got here in this state is by many mistakes.Not just jennys.How one taxes or who?
  • by anonymous Location: michigan on Feb 13, 2010 at 08:04 AM
    The country is losing wealth and money. They are passing laws/taxes to grab what is left from whoever they can for themselves.
  • by Anonymous on Feb 13, 2010 at 06:48 AM
    Don't laugh.Seen what it costs to bury some one?There has to be hidden taxes in all that somewhere.The cost is outrageous.It is what is taxed or who is taxed.Mich gov hasn't figured that out yet after years of making a mess out of michigan.It is still money taking care of money.Greed is going on and greed will destroy what it touches.As all keeps going up in prices,many can't afford stuff.Poverty starts and the ones who can pay stuff just don't get it that so many can't.Pay or don't have is the motto in Michigan.We need jobs by the thousands.Poverty is all over Mich.There are many educated people needing jobs.I'm sure employers see that.Something is keeping jobs away from Mich.The people who could do many jobs are here.SO why aren't jobs?????What is Michigan doing wrong?That is what many want the answer to.
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