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Residents would pay higher rate as income rises; GOP senator says shift would drive out businesses.
Mark Hornbeck / Detroit News Lansing Bureau
LANSING -- A plan to adopt a graduated state income tax in exchange for scrapping an unpopular surcharge on the state's main business tax drew support from Gov. Jennifer Granholm on Tuesday.
But the top Republican in the state Senate slammed the idea, saying the plan would drive businesses and people out of the state.
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"That's certainly something I'd be open to and supportive of," the governor said at a news conference.
The tax swap would require a constitutional amendment that would have to be passed by voters possibly this year or in 2010.
Majority Leader Mike Bishop, R-Rochester, said: "Switching a bad tax for a bad tax is not good policy. It's more of the same, old solutions that just don't work."
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