Gov: New tax breaks must include funding
LANSING, MI – LANSING, MI (MPRN) - Governor Granholm says she will not support new tax breaks or tax cuts unless there is a way to replace the revenue the state budget would lose.
The state Senate approved a $10,000 tax break for first-time homebuyers this week that was widely supported by Republicans and Democrats. The estimated cost to the state budget is more than a billion dollars.
But Governor Granholm says the state can't afford that when it's already facing a deficit pegged at $1.5 billion and growing.
In the past, the governor has supported using targeted tax breaks as a way to draw specific industries to Michigan. That includes a pricey film industry tax credit that critics say costs the state more money than it brings in.