MichiganRadio

Michigan gives more in tax breaks than it collects ANN ARBOR, MI (Michigan Radio) - This new report is from the Michigan Department of Treasury. It shows how tax credits, deductions, and exemptions add up to about $34-billion in revenue lost to the state this year. State taxes bring in a little more than $18-billion. There's more in tax breaks than collected in taxes.

So why doesn't the state just eliminate some of those $34-billion in tax breaks to fix its $2-billion budget hole?

John Lindstrom is with the Gongwer News Service. He says that idea has been argued.

"Of course the counter-argument is that if you eliminate those credits or you eliminate those deductions that in effect you have a real tax increase on at least some people who are now benefitting," Lindstrom explained.

The report shows the single largest tax break is the exemption of sales taxes on services. That amounts to more than $14-billion.
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