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Sales tax increase for roads

A tired Michigan Legislature had to meet all night and into the morning, until it gave approval to a proposal asking voters to increase the state sales tax by a penny to pay for better roads.  Under the package, most of the revenue would come from a one percent increase in the Michigan sales tax. Other revenue would come from a registration fee increase that would bring in 45 million dollars and heavy-truck fees that would bring in 50 million dollars. The bill package also swaps the sales tax on gas for a tax on the wholesale price of gasoline. The proposal would be on the statewide ballot in May. Democrats also negotiated restoration of a 20 percent Earned Income Tax Credit, and also a guarantee that School Aid Money would be protected from legislative raids. As a result, School Aid revenue would increase by a half-billion dollars, according to the Lansing-based Gongwer News Service.  (MRN)

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