What Now?

NFIB and the business groups sponsoring the www.stoptheservicestax.com Web site are exploring all options to repeal the services tax. Stay tuned to this site for updates. If you would like to help or be added to our e-mail list, send an e-mail to Amanda.fisher@nfib.org.

On Tuesday, Oct. 2, there was a meeting to examine options. Another meeting is scheduled at the NFIB state office on Oct. 4. Rest assured that we are not giving up on stopping this job killing tax and assault on Michigan small business.

Current options under consideration include:

Legislative action: A bill is expected to be introduced on Oct. 4, 2007, to repeal the services tax just passed.

Block the increases by referendum: The signature requirements to halt legislation are 190,063. Once a referendum is certified, the services tax couldn't go into effect. However, it is likely that the law would go into effect before any signature campaign could be properly launched. Any attempt to block the new law would likely be challenged in court on grounds the tax hikes linked to spending are immune from referendum.

Initiate a new law repealing the increases: More signatures would be required (304,101), but the legal ground would be more solid. The biggest problem is that the Legislature and governor are in position to undermine attempts to take away the power to tax.

Amend the constitution: This means changing the constitution to repeal taxes or restrain the power of the governor and Legislature to tax. Even more signatures are required (380,126), but it's the best available protection from a legal challenge.

For more information go to www.stoptheservicestax.com.