Republican lawmaker says House Democrats considering tax increase vote

LANSING — State Rep. Rick Jones (R-Grand Ledge) tells Michigan Messenger that House Democrats have been locked in behind closed door meetings all day with Gov. Jennifer Granholm. Jones says the law makers are being asked to push a package of tax increases.

Among the proposals being considered, Jones said, are measures to cut the Michigan Business Tax exemptions by 15 percent, an increase in the tobacco tax, a freeze on personal income tax exemptions and a move to keep bars open two more hours, from 2 a.m. to 4 a.m.

“They say it will raise over $300 million,” Jones said. “I would like to see that. I am doubtful.”

Jones, a former Eaton County sheriff said the idea of keeping bars open until 4 a.m. was dangerous, would raise only a small amount of revenue and in the end cost local governments more money in alcohol enforcement.

“It’s just total insanity,” he said.

Jones also sent an email late this afternoon saying that Democrats are toying with the idea of creating a three percent tax on doctors, which would be used to fund Medicaid programs. Democrats in the Senate pointed out that for every dollar Michigan spends on Medicaid programs, the federal government will provide three dollars. Doctors oppose the tax.

The House is current locked in a “call of the House,” which means that members cannot leave the House. Democrats, unhappy with the all cuts budgets the Republican lead Senate has been pushing since last week’s shut down, have been trying to find revenue sources to restore cuts to programs like the K-12 education funding and the Michigan Promise Scholarship.