LANSING, Mich. (WLNS) - Governor Rick Snyder has proposed raising the sales tax to help pay to fix up the roads, but he's running into opposition from the Tea Party and now, Michigan Retailers are joining the fray.
Tea party lawmakers don't want to raise the sales tax and the Michigan Retailers are telling lawmakers, hiking the sales tax from 6 to 8 percent to repair the roads will destroy stores on Main Street. Amazon.com already enjoys a price advantage over traditional stores because the stores collect the 6 percent sales tax and the Internet does not.
"They are the retailers that invest in the community. They are asked to contribute to public education and now you are asking them to compete with one hand tied behind their back," said James Hallan, Michigan Retailers Association.
The Education Lobby meeting is also worried because the sales tax on gas is earmarked in part for the schools, and if somehow this new sales tax plan leads to the elimination of that, would mean more cuts.
"I would hope as they talk about transportation and the need for more money, that they don't rob Peter to pay Paul. They should heve the money for the schools to provide services to our children," said Dave Martell, School Business Offices Association.
The chair of the senate finance committee is opposed to the sales tax increase.
"I took the no tax pledge. There are other alternatives," said Senator Patrick Colbeck.
The governor lectures lawmakers it is time to set aside politics and do what he thinks is the right thing to do, but he wondered out loud if legislators could do it?
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