Michigan Governor Governor backs taxes to help erase deficit

The Detroit News reports:

Gov. Jennifer Granholm is proposing an entertainment tax, another 25-cent boost in the cigarette tax and a penny levy on bottled water to help erase next year's budget deficit.

Sources closest to budget negotiations said Thursday the plan -- which would raise about $685 million a year -- also would slightly reduce the state's film tax credit and an income tax break for low-income families. The governor would phase out the widely unpopular 22 percent surcharge on the Michigan Business Tax over three years starting in 2011.