LANSING, MI (AP) -- A veteran Michigan lawmaker and Democratic gubernatorial candidate says she thinks Michigan voters will support swapping the state's flat income tax rate for a graduated one next year.

Democratic state Rep. Alma Wheeler Smith also is hoping lawmakers will vote in the next two months to eliminate a business tax surcharge and some business tax breaks while lowering the sales tax rate to 5.5 percent and extending it to services.

She unveiled her plan Tuesday morning at a Capitol news conference. She says a comprehensive solution is needed to fix Michigan’s budget problems.

Smith's plan includes a new income tax credit that would completely cover tuition at a state university, community college or vocational school, or preschool costs.

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