Tax Reforms on Tap?

Michigan House Speaker Andy Dillon last week said he is considering a proposal to put a series of tax reforms on the November ballot.

Dillon, a Democrat, is working with the pro-business group Detroit Renaissance in reviewing a number of changes to the state's tax structure, according to reports.

The ideas include a constitutional amendment that would keep property taxes from increasing when property values are dropping, an increase in the sales tax, the introduction of a graduated income tax, and the elimination of a surcharge on the Michigan business tax, or MBT.

The 22% surcharge on the MBT has come under nearly constant attack since lawmakers implemented it in late 2007. A number of business groups are pushing to eliminate the charge, though Gov. Jennifer Granholm has said she would only support the move if lawmakers identified replacement revenue.

Granholm reportedly supports a graduated income tax in place of the current 4.35% flat rate tax. Most of the proposals would need to be approved by the Legislature by the end of the summer in order to make it onto the November ballot.

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