In Michigan
4:40 pm
Wed October 21, 2009

House Tax Policy Committee discusses Senate revenue plan

LANSING, MI – Lawmakers are discussing revenue proposals to fill a $100 million hole in the K-12 schools budget. This week House and Senate committees began reviewing plans from the opposite chamber.

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The House Tax Policy Committee began taking testimony on the Senate Republican revenue proposal, which would generate money by limiting tax credits.

Democratic Representative Kate Ebli chairs the committee.

"The Senate promised 100 million dollars in revenue, and that has not come to us in any of the Senate bills," she says.

The Senate proposed fixing the shortfall in the School Aid Fund by freezing the earned income tax credit at its current level. But Democrats in the House say they won't vote for a total freeze because the credit increase was promised to working poor families.

Democrats also don't like that the Republican plan is tied to a reduction in the Michigan Business Tax. But lawmakers say there is progress being made as the House and Senate are beginning to openly discuss the other's proposals.