Michigan House Democrats Submit Resolution for Graduated Income Tax

October 1, 2014

Last week, 12 Michigan House Democrats submitted House Joint Resolution MM (sponsored by State Representative Jim Townsend), to strip out Michigan's constitutional protection against a graduated income tax. Proposals to strip out this taxpayer protection clearly point to a broader agenda to impose a giant tax increase, and the Michigan Chamber strongly opposes this type of proposal.
 
Historically, calls and proposals for a graduated income tax were targeted squarely at individuals and those who pay business taxes via the income tax as flow through entities (such as s-corps, LLCs, partnerships, etc...) However, now that Michigan has moved to a Corporate Income Tax, a graduated income tax could easily be foisted on corporations as well.
 
HJR MM would need to be passed by a 2/3 majority of both the House and Senate before being placed on the ballot for voters to accept or reject it. The Michigan Chamber stands ready to strongly oppose this job-killing proposal which would impose a giant tax increase on businesses.  
 
For more information on this or other tax issues, please contact Tricia Kinley, at tkinley@michamber.com or (517) 371-7669.