2008 Woodie Awards
Cropsey says expansion of tax unlikely
Dems, Reps: Sales tax changes needed by Dec. 1
By: Maria Spicketts
Issue date: 11/16/07 Section: News
- Page 1 of 1
The Michigan sales tax expansion is unlikely to be enacted, according to a local politician.
Sen. Alan Cropsey, R-Dewitt, said the sales tax proposal will increase the Michigan Business Tax by approximately 33 percent.
It is full of inconsistencies and the way it is applied needs to be fixed, he said.
Cropsey said Michigan Democrats are the reason the tax was approved.
"The governor and Democrats forced it through the legislature," he said. "Now they're realizing they made a huge mistake."
Michigan Senate Democrats spokesman Tom Lenard said it is a stretch to pin the tax increase on a single party.
"It was a bi-partisan approach that was kind of rushed," he said.
Leslee Fritz, spokeswoman for the State Budget office, said the governor is open to changing the service tax.
"It needs to be a full and permanent replacement, though," she said. "If it meets her test of being a full replacement and not hurting the business community, she will agree to it."
Last week, the House voted to repeal the tax and replace it with the increase to the MBT, but a similar bill in the Senate only repeals the tax without a replacement.
"The one in the Senate is a bill that simply repeals the tax. That's our mission. We support it 100 percent," said Matt Resch, spokesman for Ax the Tax Coalition. "As far as our coalition is concerned, we don't have a position on how or if the tax should be replaced."
Ax the Tax Coalition is a group of approximately 50 business owners working to repeal the tax.
Lenard said there is a consensus that something needs to be done to alter the tax.
"Everyone is interested in making changes to what has been proposed," he said. "But we shouldn't get rid of the tax without having a way to replace the revenue. There is agreement that something needs to be done."
Joneil Cook, Mount Pleasant Chamber of Commerce interim president and CEO, said while the chamber has not made an official position yet, it would be unlikely to support anything that would harm businesses.
"We have not taken a formal position," she said. "Anything that would negatively affect business, we would be unlikely to support."
Rep. Bill Caul, R-Mount Pleasant and Cropsey visited the chamber last week to pass out literature and petitions.
"They encouraged everyone to send in petitions to keep pressure on legislators," Cook said.
news@cm-life.com
Sen. Alan Cropsey, R-Dewitt, said the sales tax proposal will increase the Michigan Business Tax by approximately 33 percent.
It is full of inconsistencies and the way it is applied needs to be fixed, he said.
Cropsey said Michigan Democrats are the reason the tax was approved.
"The governor and Democrats forced it through the legislature," he said. "Now they're realizing they made a huge mistake."
Michigan Senate Democrats spokesman Tom Lenard said it is a stretch to pin the tax increase on a single party.
"It was a bi-partisan approach that was kind of rushed," he said.
Leslee Fritz, spokeswoman for the State Budget office, said the governor is open to changing the service tax.
"It needs to be a full and permanent replacement, though," she said. "If it meets her test of being a full replacement and not hurting the business community, she will agree to it."
Last week, the House voted to repeal the tax and replace it with the increase to the MBT, but a similar bill in the Senate only repeals the tax without a replacement.
"The one in the Senate is a bill that simply repeals the tax. That's our mission. We support it 100 percent," said Matt Resch, spokesman for Ax the Tax Coalition. "As far as our coalition is concerned, we don't have a position on how or if the tax should be replaced."
Ax the Tax Coalition is a group of approximately 50 business owners working to repeal the tax.
Lenard said there is a consensus that something needs to be done to alter the tax.
"Everyone is interested in making changes to what has been proposed," he said. "But we shouldn't get rid of the tax without having a way to replace the revenue. There is agreement that something needs to be done."
Joneil Cook, Mount Pleasant Chamber of Commerce interim president and CEO, said while the chamber has not made an official position yet, it would be unlikely to support anything that would harm businesses.
"We have not taken a formal position," she said. "Anything that would negatively affect business, we would be unlikely to support."
Rep. Bill Caul, R-Mount Pleasant and Cropsey visited the chamber last week to pass out literature and petitions.
"They encouraged everyone to send in petitions to keep pressure on legislators," Cook said.
news@cm-life.com
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