Michigan Chamber Calls on Policymakers to Reject Sales Tax on Services

December 12, 2014

The Michigan Chamber of Commerce issued the following statement by Michigan Chamber President & CEO Rich Studley regarding the current legislative debate on how to properly increase road funding.  

“The Michigan Chamber of Commerce applauds legislative leaders and the Governor for their commitment to finding a comprehensive solution to our road funding crisis. Michigan Chamber members have consistently endorsed user fee systems under which they would be making significant contributions to solving the problem. Unfortunately, during this critical Lame Duck session, several policy makers are advocating a destructive sales tax on services as a funding source. This ill-conceived scheme would cause great damage by unfairly picking winners and losers depending on political whims. Michigan tried this dangerous experiment under then-Governor Granholm in 2007. Under tremendous pressure from taxpayers, the services tax was repealed within two months.

“The Michigan Chamber urges policy makers to remain focused on identifying a fair and reliable funding mechanism based upon user fees to solve this critical issue.”