State Budget

Group calls for ending tax exemptions

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May 15, 2008 - 1:35PM

LANSING, Mich. (AP) - A coalition of human service, education and other groups wants state lawmakers to look at tax exemptions as one way to resolve a potential deficit in next year's budget.

The groups said Thursday that closing what it regards as tax loopholes and eliminating certain tax breaks could generate more than $400 million in the fiscal year that starts Oct. 1.

The group supported capping tax incentives for filmmakers, ending the sales tax exemption on pop and candy from vending machines and several other proposals.

Businesses are opposed to closing some of the exemptions because they say it amounts to a backdoor tax increase.

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