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HFA: Business tax cut will wipe out rising revenue

By AP

LANSING, MI –
The House Fiscal Agency says it expects Michigan to take in $427 million more by Sept. 30 than earlier forecasts.

It tempers the good news with a warning that the new business tax cut just enacted will cut revenue in the next budget year and that about $77 million of this year's surplus will have to be used to fill the resulting hole.

The Senate Fiscal Agency says it expects revenues to grow even more than the House Fiscal Agency predicts in the budget year that starts Oct. 1.

The agencies released their reports Friday in anticipation of Monday's revenue estimating conference where state economists will forecast how much tax money the state will take in through 2012.

State budget director John Nixon says he's pleased by the increase.

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