Michigan House Democrats propose business tax hike for roads


LANSING, MI (AP) – Democrats in the Michigan House are proposing a $530 million business tax hike as part of a newly announced $1.2 billion plan to improve roads.

The proposal unveiled Tuesday would increase the corporate income tax from 6 percent to 9 percent. Democrats also called for more regulation in the electricity market and redirecting money that dominant utilities would stand to gain under the move to transportation funding.

Republicans control the Legislature and have passed competing plans that call for higher fuel taxes and shifting general funds to roads. Minority Democrats say companies that have benefited from a past GOP tax overhaul should “pay their fair share” instead of putting the tax burden on individuals.

House Republicans say the Democratic plan is a “non-starter” and a “little embarrassing.”

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