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Michigan looks at increasing sales tax to fund road repairs.
Michigan’s roads are in need of major repairs and the state government is considering ways to pay for these renovations. One idea that is gaining popularity with state lawmakers is to increase sales taxes. The current proposal is to increase Michigan’s tax rate from 6 percent to 7 percent. Increasing sales taxes would help the state raise the needed revenue without cutting spending in other areas like education.
This proposal has bipartisan support as both Republican and Democratic lawmakers are working with the state’s governor on this plan. Lawmakers were hoping to get this plan ready by the end of the August session so the tax increase could go to a state vote by November. This doesn’t appear likely so Michigan’s sales tax rate should stay the same for the rest of 2013.
David Rodeck
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