DETROIT -- There was good news and bad news Friday about the proposed new taxes in Michigan.

Democratic House Speaker Andy Dillon said Friday some of the planned taxes on services could be eliminated -- if the state's sales tax is increased.

Dillon said lawmakers are debating the idea of putting the sales tax increase on the ballot next year so that voters can decide their own financial fate.

The proposal, according to lawmakers, is to raise the state's sales tax from 6 percent to 7 percent and to reduce the number of services that would be taxed.

Critics of the service tax idea would also like to see an alternative plan. "We can't find any guiding criteria or principal that identifies why the (services) that got selected got in and the ones that got excluded are not in," said Tom Clay of Citzens Research Council, a non-partician group.

Governor Jennifer Granholm said she is open to alternatives, but that the budget must be balanced. "If there needs to be adjustments certainly, I'm open," said Gov. Granholm. "But what I will not compromise on is, creating another structural deficit."

Lawmakers are expected to discuss the idea of a public vote on the sales tax sometime next week.

Meanwhile, both the Democrats and Republicans have launched radio ads addressing public criticism over the service tax vote.

"The Democrats in Lansing finished their night of taxing and now we see what they've done," states an ad from the state GOP.

State Democrats are running an ad that states "Ever notice when times get tough there are those who would rather tear people down and divide us."