Governor Recommends Reducing Sales Tax, Adding Service Tax

Governor Jennifer Granholm proposed tax changes to help balance the 2011 budget. She recommended reducing the current 6-percent sales tax to 5.5-percent. In addition, she recommended adding a service tax. It would impact nearly all customer service industries. Many local businesses are not on board with this proposal. 9&10's Christina Vecchioni and photojournalist Aaron Smith have more local reaction to this proposed tax change.

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