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Whitmer open to talks as Hall proposes taxing services to fund $5B property tax cuts

Alex Brandon
/
AP Photo, File

Governor Gretchen Whitmer says she is willing to negotiate with House Speaker Matt Hall on a plan to begin taxing certain services to offset cuts to property taxes and utility rates

House Speaker Matt Hall has proposed about $5 billion dollars in cuts to property taxes and utility rates.

He says he would offset the cuts by creating a 6% tax on services like performing arts, golf, artificial intelligence and political ads.

Governor Gretchen Whitmer said during a taping of WKAR’s Off The Record that it’s easy to talk about tax reform, but harder to get it done.

“To have a speaker of the House put up, you know, about $5 billion in different taxes on the table is kind of remarkable. So, I’d like to see where he wants to go with it.”

Services are not currently taxed in Michigan. Hall says some services, like healthcare, veterinary care, barbers and car repairs would remain exempt.

Whitmer says she voted for a service tax as a state senator when it was proposed by former Governor Jennifer Granholm.

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