LANSING – If state officials turn to taxes to help resolve its ongoing budget problems, a slight majority of residents polled would favor either enacting a graduated income tax or cutting the sales tax rate and extending the tax to services. But the survey also showed most would oppose simply raising the state’s income tax or cutting business taxes.

The survey, conducted of 600 likely voters, also showed that the largest percentage, though short of a majority, said the state should solve its budget problems with a combination of budget cuts and taxes. The second largest percentage said it should be done just with budget cuts.

The survey also showed that most surveyed opposed cutting things like public education, the State Police road patrols, revenue sharing for local services or Medicaid services. Cutting spending on the Legislature got the highest percentage of support for budget cuts.

The survey was conducted through June 23-28 by the Lansing firm of EPIC/MRA for the Detroit News, WXYZ, WOOD, WILX and WJRT television stations and has a margin of error of 4 percent.

Most people, 75 percent of those polled, thought the state was headed in the wrong direction and 63 percent of those polled said the issue they were most concerned with was improving the state’s economy. Not a single other issue even approached the economy in terms of concern, the second highest issue was keeping health care affordable and accessible and that was cited by just 7 percent of those polled.

Asked how the state should solve its budget problems, 46 percent said the state should do a combination of both budget cuts and tax increases. Another 34 percent said cuts only should be considered and just 4 percent thought taxes alone should be increased.

But when asked if the state had cut all that it could cut and tax increases now had to be considered, or if the budget could be balanced without having a major effect on programs, 54 percent said the budget could be balanced without a major effect on programs just through cuts, while 31 percent said enough cuts had been made.

If presented with the option of raising the income tax from the current 4.35 percent to 5.35 percent, a clear majority opposed that idea; 55 percent opposed compared to 43 percent in favor.

A clear majority also opposed stretching the current 6 percent sales tax to services, 53 percent to 44 percent.

When asked to choose one option or the other, however, 46 percent said they would back extending the sales tax to services, while 35 percent would back increasing the income tax. Another 15 percent said they would oppose any tax increase.

However, if the state were to adopt a graduated income tax – now barred by the Constitution -54 percent of the respondents said they could favor such a proposal. Another 38 percent said they would oppose it.

And asked if they would back extending the sales tax to services if the overall sales tax rate was cut to 5 percent, 52 percent of the respondents said they would support such a proposal while 40 percent opposed it.

Somewhat surprisingly, large majorities opposed cutting business taxes, even the surcharge on the Michigan Business Tax, which many officials have pushed as a way of helping boost business in the state. The questions were all posed with the idea of making up the revenue lost through other means.

For example, asked if the surcharge should be dropped with the money made up by extending a 5 percent sales tax to most services, a total of 57 percent of those polled opposed that idea while 30 percent supported it.

Asked if the state should eliminate the personal property tax businesses pay, again making it up with a 5 percent sales tax on most services, 68 percent said no while just 19 percent said yes.

And asked if the MBT should be eliminated in exchange for lowering the sales tax rate and extending it to most services and instituting a graduated income tax, 66 percent were opposed while just 20 percent were in favor.

Asked what the state should and should not cut, 69 percent said the State Police should not be cut, 67 percent said Medicaid services should not be cut, 65 percent said per pupil funding in public schools should not be cut, 60 percent said revenue sharing for local services should not be cut and 55 percent said funding for roads should not be cut.

But 45 percent said funding for the Legislature should be cut “a lot.”

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

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