Snyder Still Looking for $1 Billion to Fix Roads - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Snyder Still Looking for $1 Billion to Fix Roads

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LANSING, Mich. (WLNS) - Those at the nation's capital aren't the only ones have trouble balancing the books. Here in Lansing, Governor Rick Snyder is still looking for a billion dollars to fix Michigan's roads.

The governor and his GOP legislative leaders confirm they are looking at taxing services such as golf, bowling and haircuts.

The Senate GOP leader favors the 6 percent sales tax now collected at the pump, but instead of going to the roads, that sales tax into the schools and cities.

The House GOP committee chair reports no final decision has been made, but the beauty of the sales tax on services, depending on your income bracket, you can choose to use those services or not.

"When you are wealthier, you can choose to have somebody clean your pool or choose somebody to do other things. Those are taxes that people with more money could probably afford to pay those taxes," said Schmidt.

But some counter, saying taxing services means some consumers will choose not to use them.

"Everybody will choose not to play golf and not get a hair cut and get it at home instead and it will mean the loss of jobs. If we need more revenue for the roads, there are plenty of ways to find it in the existing budget, we dont need to raise taxes," said Hoogendyk.

The governor's Transportation Department reports it has squeezed all the money it can out of the existing budget, hence tax hikes of some sort are needed.

The Senate GOP leader does not rule it out, but he promises this legislature will not repeat the debacle in 2007, the last time they did a service tax and then quickly repealed it.

"We will not have a fiasco like that again. If we look at that, it will be much more of a rifle shot than a shotgun shot," said Randy Richardville.

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