Detroit

Concerns Noted by Newspapers and Blogs About Michigan's Service Tax

Lobbyist influence may have unfairly affected which services are taxed.
Revenue projections are too speculative.
The tax may prove to be the legislature’s own ATM when a budget crisis looms.
Services do not fall neatly into the manufacturing and retail scheme of sales/use tax. The tax applicable to indirect business services could result in a tax on a tax for small businesses.
Small businesses may be inordinately affected because they are more likely to outsource the services subject to taxation.
The service tax as passed may prove a reporting headache. The long-term effect of which may be that people shift from independent contractor status back to traditional employment.
The tax could affect the demand for services and/or tips given for service practitioners.

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