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Michigan Matters: A new entertainment and sales tax for Detroit?

Could a new entertainment tax and a new sales tax be ahead for the Motor City?

Eric Lupher, president of the Citizens Research Council of Michigan, the nonpartisan organization celebrating its 116th anniversary, talked about the prospect after his organization was hired by the Detroit City Council to examine both options.

CRC presented results in 2025 for the entertainment tax to the city council and will be doing so for the proposed one-percent sales tax in the coming days, he said on Michigan Matters, which airs this Sunday.

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Eric Lupher of the Citizen Research Council of Michigan Tim Lawlis/CBS Detroit

The city could raise an estimated $72 million a year if it were to adopt a 1% sales tax.

The CRC report on an entertainment tax discussed a 3% to 10% tax on things like sporting events, which could generate $14 million to $50 million for the city's coffers.  He added that Detroit was one of the few major U.S. cities without such a tax.

Lupher also talked about what would be required for the city to adopt either measure.

Also on the show, Chris Holman, founder and CEO of Michigan Business Network, Tom Kelly, president and CEO of Automation Alley, and Susy Avery, former chair of the Michigan Republican Party and political strategist, talk about the impact of Republican businessman Perry Johnson joining the fray as he decided this week to again run for governor, joining a crowded field.

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Tom Kelly, Susy Avery and Chris Holman Tim Lawlis/CBS Detroit

And they discussed the impact of Mike Duggan, former mayor of Detroit, who is running as an independent candidate for governor, and which party might be most impacted.

The trio talked about Lt. Gov. Garlin Gilchrist, who recently took himself out of the running for the open governor's seat and is now running for Michigan Secretary of State.

Holman, who conducts a regular survey of hundreds of businesses across Michigan, found they are not feeling optimistic about the economy or their enterprises.  They also had concerns about meeting their organization's talent needs.

Automation Alley, which is celebrating its 25th anniversary, has grown to include thousands of companies, with technology being a focal point. Kelly talks about how they have helped companies through trade missions and more.

(Watch Michigan Matters at its new time: 5:30 a.m. Sundays on CBS Detroit and 9:30 a.m. Sundays on CW Detroit 50 WKBD). 

(Carol Cain is the 13-time Emmy-winning senior producer and host of Michigan Matters).

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