Reporting like this only happens with your financial support. Donate to WKAR today!
Gov. Gretchen Whitmer says she is willing to negotiate with House Speaker Matt Hall, R-Richland Twp., on a plan to begin taxing certain services to offset proposed cuts to property taxes and utility rates.
Hall has proposed about $5 billion in cuts to property taxes and utility rates, which he says he would offset by creating a 6% tax on services like performing arts, skiing, golf, artificial intelligence and political ads.
Whitmer said during a taping of WKAR’s Off The Record that it’s easy to talk about tax reform, but harder to get it done.
“To have a speaker of the House put up about $5 billion in different taxes on the table is kind of remarkable,” Whitmer said. “So, I’d like to see where he wants to go with it.”
Services are not currently taxed in Michigan. Hall said some services, like health care, child care, veterinary care, barbers and car repairs would remain exempt.
Whitmer said while she wouldn’t expect Republican legislators to support creating new taxes, Hall has “brought some surprises before,” referencing a $2 billion road funding deal that placed a 24% wholesale tax on marijuana and replaced the sales tax on gasoline with an increased gas tax.
Whitmer said she voted for a service tax as a state senator when it was proposed by former Gov. Jennifer Granholm.
Whether she would support a similar proposal now would depend on specifics, Whitmer said. Hall has not introduced legislation yet, but he has floated possibilities in interviews.
“I’m one that believes, if an idea is genuine, put it on the table,” Whitmer said. “Let’s see what’s possible.”
Whitmer proposed a plan to give seniors a refund on 10% of their property taxes. Because the refund would come out of the state’s budget, local governments would not lose revenue.
With just months left as governor, Whitmer said she is focusing on “things that are possible” amid a tough political environment, with split control of government and an upcoming election that could hamper progress as legislators hit the campaign trail.
“I expect the opposing party to throw their best at me, and we'll have some tough debates, and, ultimately, tough negotiations,” Whitmer said. “And at the end of the day, we’ve got to find common ground for the people of Michigan.”
