LANSING, MI--(Marketwire - Mar 1, 2013) - Increasing the state sales tax 17 percent to seven cents on the dollar to help pay for road repairs would backfire on the state's recovering economy by reducing retail sales and driving more purchases to out-of-state, online businesses that don't collect sales tax, Michigan Retailers Association (MRA) President and CEO James P. Hallan said today.
"The last thing our economy needs is a sales tax increase that reduces Michigan retail sales and kills more income-tax-paying retail jobs in this state," said Hallan.
"You can bet that online retailers such as Amazon are salivating at the prospect of a higher sales tax in this state, because it would increase their already sizable and unfair competitive advantage over Michigan-based businesses."
Hallan added that MRA supports the governor's road financing plan that relies on user fees.
"Michigan Retailers Association agrees we need to fix our roads; however, a sales tax increase is not the way to do it. A sales tax increase will only backfire on our economy and undo a lot of the good work that legislators and the governor have done the past two years."
Michigan Retailers Association represents nearly 5,000 members and their more than 15,000 stores and websites in Michigan. Retailing provides more than 850,000 jobs in Michigan.