As Michigan's tax base continues to dwindle and the state looks to recover from a 50 percent loss in the general budget, Michigan State University economists say one way would be to add a 5.5 percent tax to all services in Michigan, from haircuts to home repair. 

The new tax on services could generate up to $500 million annually for the state's general fund. 

Another idea suggested would be to tax the wealthy by introducing a graduate income tax on top 20 percent of earners.