Granholm Proposes Tax Amnesty Program

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Michigan Governor Jennifer Granholm is proposing a new tax amnesty program.

If it gains legislative approval, as expected, the program could provide an estimated $90 million revenue boost for the state.

According to WWJ Lansing Bureau Chief Tim Skubick, if you have cheated the state out of taxes you face no jail time if you pay up.

“The Senate proposed that two years ago,” said Senate Majority Leader Mike Bishop, R-Rochester.  “It’s not a new idea, but it’s a good idea, and I support it,” Bishop said.

The tax amnesty program has already cleared the Michigan Senate and it’s been languishing in the Michigan House where Representative Fred Durhal said it will likely pass.

“I would call it an economical way of being able to resolve your differences with the government,” Durhal said.

Meantime, the Governor also plans to lay out a new spending plan for lawmakers with the hope of getting a state budget in place.

Michigan faces a deficit ranging from $200 million to $600 million in the next fiscal year starting October 1, even though the state is in line to get about $698 million more federal dollars for public schools and Medicaid.

Bishop said this year’s budget negotiations have been complicated because it’s an election year and several lawmakers in both parties have been seeking re-election or new offices.

Granholm said she understood the primary election and upcoming GOP and Democratic state conventions have distracted lawmakers from dealing with the budget, but she said she hopes to see progress now that people are “back and focused.”

(Copyright 2010 by WWJ Newsradio 950. All Rights Reserved. The Associated Press Contributed To This Report.)

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