Senate passes replacement for service tax expansion
LANSING - The Michigan Senate replaced the onerous expansion of the state sales tax on certain services Tuesday with a fairer plan that addresses the concerns of the business community, said Sen. Randy Richardville.
"I voted against the sales tax on services when it was passed in early October because I felt it would place a huge burden on businesses in the state," said Richardville, R-Monroe. "Michigan's economy is already hurting. It does not make sense to further tax the state's job providers and drive them out of the state."
While the original services tax contained no expiration date, the replacement would end on Jan. 1, 2011 under the Senate Republican plan. Rather than collecting $3 billion from businesses during the next three years, the reform reduces the burden to $1.7 billion.
"I have heard from several businesses in my district and across the state," Richardville said. "My colleagues and I worked with business leaders and listened to their concerns to develop this plan. We are not allowing the state government to spend as if it has a blank check and then turn around and require businesses to pick up the tab. This proposal does not single out certain businesses and makes the requirement fairer across the board."
Posted: Tuesday, November 20, 2007
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