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Big Business Spends $7M to Keep Mich. Tax Cut Intact

Updated: 08/02/2014 8:28 AM
Created: 08/02/2014 8:27 AM WDIO.com

LANSING, Mich. (AP) — Big business is taking no chances to make sure voters approve a statewide referendum needed so a gradual $500 million cut in taxes on their machinery and equipment stays intact.

Manufacturers, automakers and others spent nearly $7 million promoting Proposal 1 as of two weeks before Tuesday's primary election.

There's no organized opposition, but the effort reflects concern that voters will reject the ballot measure primarily out of confusion.

Prop 1 asks voters to endorse a complicated funding mechanism designed to ensure local governments and schools are fully reimbursed as taxes are slashed on businesses' machines and furniture. The plan received broad bipartisan support from lawmakers, Gov. Rick Snyder, the business community and groups representing counties, cities and townships.

If the measure is defeated, the tax cuts will be halted.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

AP Photo/Carlos Osorio, file

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