In Michigan
6:17 pm
Wed January 13, 2010

MI group: Slash business taxes, expand sales tax

LANSING, MI –
A group of Michigan business executives is trying to build momentum for changes it says would help the state budget and improve the state's economic climate.

Business Leaders for Michigan says Wednesday it wants to slice the state's main business tax in half and replace the lost money with a sales tax on some services.

The sales tax would be broadened but its rate would be lowered from the current 6 percent to 5.5%.

The business group wants to reduce the size of the state government workforce and eliminate a pay increase for state workers scheduled for late this year.

The coalition includes leaders from 75 Michigan businesses and universities. The group says urgent action is needed because of Michigan's poor economy and a looming $1.6 billion state government budget deficit.