Taxes continue to trip up Michigan budget solution

By: The Associated Press
By: The Associated Press

State lawmakers will resume their attempts to solve Michigan's looming budget crisis Friday.

A proposal to put a sales tax increase proposal before voters in January stalled on Wednesday. A half-hour after starting a vote on the measure in the House, it had become clear there was not enough bipartisan support to advance the measure.

The proposal would raise Michigan's sales tax from the current 6 percent to 7 percent and needs the approval of two-thirds of the members in both the House and Senate to make the ballot.

The proposal also would give voters a chance to replace other tax increases the state Legislature may act on later this week.

Michigan's new fiscal year begins October 1st. So far, there has been no resolution on how to address a projected 1.7 billion dollar deficit in budgets funding dozens of state services.


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