TAX NEWS - JUNE 2010

Michigan Tax: For balancing budget, voters want tax cuts -- not tax hikes

by CHRIS CHRISTOFF, 02 June 2010 -- Michigan voters would rather cut state programs and state employee benefits than raise taxes to balance the budget, a Free Press/WXYZ-TV poll shows.

And they're in no mood to expand the state sales tax to services.

The poll of 600 Michiganders likely to vote in the August primary found that one in four voters would prefer using only budget cuts to avoid a state deficit. And given the choice, 34% favor cutting state programs and services; 27% said cut employee wages and benefits, and 28% said use a combination of both.

About half of voters oppose a plan to reduce the sales tax from 6% to 5.5% and extend it to dozens of services, such as haircuts, auto repairs, dry cleaning, lawn service and sports and entertainment events.

Forty-two percent favor the plan, which Gov. Jennifer Granholm proposed for next year's budget, but which has gained little traction in the Legislature.

"Everybody wants to tax this, tax that. I think it's a bad idea," said Bonnie Thomas, 50, of Port Huron, who works in a physical therapy office. "Every penny matters to a lot of people living paycheck to paycheck."

Similar to an April poll, the new poll shows 43% of voters prefer balancing the state budget largely with cuts to programs. Twenty-seven percent say the budget should be balanced by equally cutting programs or employee wages and benefits, and increasing state taxes. The poll, which was conducted by EPIC-MRA of Lansing, found 19% said the budget should be resolved by raising taxes.