DETROIT (WWJ) – In the midst of a power struggle with the state over control of city finances, Detroit City Council voted Tuesday to raise taxes on city-based corporations.

WWJ Newsradio 950’s Florence Walton reported City Council voted 8-1 to increase the corporate income tax from 1 percent to 2 percent.

Council President Pro-Tem Gary Brown said it’s all part of a shared sacrifice in helping the cash-strapped city.

“We don’t need state legislation to do something that this body can do without help from Lansing,” said Brown. “Raise additional dollars from the corporate community … but I can’t in good conscience ask city employees to give back 10 percent and not ask the corporate community to share in that sacrifice.”

The increase is expected to raise about $6 million dollars in 2013.

Detroit has borrowed more than $600 million since 2005 to stay solvent, and floated another $137 million in bonds last week to avoid bankruptcy, which was projected to happen sometime this spring. The city is battling with the state, which wants a nine-member financial oversight board put in place to force Detroit to make serious structural financial changes.

The board would be tasked with consolidating departments, and more, to help the city survive financially. City Council members and residents have loudly protested the consent agreement, with some saying it’s racist and others saying it strips residents of their right to have decisions made by their own democratically elected leaders.

The move to raise taxes came during marathon council sessions where the consent agreement was debated.

Comments (2)
  1. JB says:

    This is a clumsy attempt at a money grab, which will only have effect of driving much needed business out of Detroit. The Michigan Standard called this the “political equivalent of what Malik Shabazz called for – burning the city down.

    Too bad we all have to suffer under these crooks

  2. Jim says:

    Did the businesses get to vote? Have some of you (well, you did) forget the shout way back that said: “No taxation without representation”? Again, the “haves”, assuming that a business is really a “have” supports the useless. Yes, there are plenty of useless in Detroit, and in the suburbs too. I’m just sayin’!

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