Legislators ponder hike in state taxes
As Michigan looks down the barrel of a $1.5 billion deficit for the 2008 fiscal year, a debate has been brewing in the Capitol on the subject that could potentially affect not only the state's finances but the outcome of upcoming elections: Taxes. The questions being raised by legislators about tax policy runs the gamut from raising the current 3.9 percent income tax rate to extending the reach of the sales tax. Although cuts have been made to the state government, from jobs to funding, they will not be enough to help Michigan out of its current financial situation, said Bryan Ritchie, an MSU associate professor of international relations and expert on Michigan's economic future. "There's no way to get around the current circumstances without raising taxes," he said.