Granholm: 2% Tax on Services

According to the Freep, Governor Granholm will call for a 2% sales tax on services.

The briefing comes following a Gongwer News Service report that Granholm will call for a 2% sales tax on services. A person familiar with the governor’s budget plans confirmed that the administration was planning to propose the 2% sales tax on services.

The Gongwer report said health services, like fees for doctors and hospitals, and education services, such as college tuition, would be exempt. The tax would raise about $1 billion a year in new revenue, the report said.

Although any kind of sales tax disproportionately impacts people with lower incomes, I guess it could be more acceptable to the public.  Despite the fact that the alternative is massive cuts in social programs, it's almost guaranteed that the Mackinac Center and Chamber of Commerce influenced GOP legislators are going to vehemently oppose this.  What we really need to do is establish that spending cuts really do impact quality-of-life services.  ::Sigh...::

Hat tip to wizardkitten for the heads up.

Also, an article in today's Onion is kinda depressing too.