SERVICE TAX LANSING, MICH. (AP) (wgvu) - LAWMAKERS FACE A LOT OF WORK AND LITTLE
TIME LEFT TO REPEAL AN UNPOPULAR TAX ON SERVICES BEFORE IT KICKS IN
A WEEK FROM SATURDAY.
THE REPUBLICAN-CONTROLLED SENATE VOTED ALONG PARTY LINES
YESTERDAY TO REPLACE THE SERVICE TAX BY ADDING A TEMPORARY
SURCHARGE TO MICHIGAN'S MAIN BUSINESS TAX.
BUT GOVERNOR GRANHOLM DOESN'T LIKE THE BILL BECAUSE IT
ELIMINATES THE SURCHARGE IN 2011. DEMOCRAT GRANHOLM SAYS THAT WILL
CREATE A POTENTIAL ANNUAL BUDGET SHORTFALL IN THE FUTURE.
MANY IN THE BUSINESS COMMUNITY SUPPORT A MEASURE PASSED BY THE
DEMOCRAT-CONTROLLED HOUSE THAT WOULD GENERATE THE SAME AMOUNT OF
MONEY AS THE SALES TAX ON SERVICES.
A HOUSE-SENATE CONFERENCE COMMITTEE LIKELY WILL TRY TO CRAFT A
COMPROMISE PROPOSAL NEXT WEEK.
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