A Massive Tax Hike in Disguise
You may be approached at a farmers’ market, festival or event this summer or fall and asked to sign a petition to “Invest in MI Kids” that may sound great at first.
But here’s what the signature gatherers won’t tell you:
“Surcharge” = tax hike. It would be a significant shift in Michigan’s tax structure that’s been prohibited by Michigan’s Constitution since its inception, replacing Michigan’s flat income tax with a graduated (progressive) one.
Tax on small business, not “billionaires.“ It doubles the rate on income over $500K (individuals) and $1M (joint filers) — around 75% who are small to mid-size business owners!
- Sky-high outlier. It raises taxes to 9.25% — the 7th highest in the country and highest in the Midwest.
- Middle class squeeze. These proposed income thresholds would be locked into our State Constitution, with no adjustment for inflation. Over time, as wages and cost of living rise, more and more middle- and upper-middle-income taxpayers will be pushed into the staggeringly high tax bracket.
One more key thing: It’s important to note that while supporters claim the measure will “Invest in MI Kids,” the proposal doesn’t guarantee more money for classrooms. In fact, the amendment gives politicians broad power over how the new tax revenue is spent — meaning there’s no requirement that a single
additional dollar will make it into our classrooms.
The big picture: Despite how it’s being sold, this proposal isn’t about taxing high-income earners. According to IRS data, about 18,300 Michigan taxpayers would be hit by the new 9.25% tax bracket — and around 14,000 of them (about three-quarters) are small to mid-size business owners operating in every community across our state.
This kind of steep, targeted tax increase puts jobs at risk, raises prices, deters investment, and undermines Michigan’s competitiveness — all while the state is already struggling with population loss and slow
economic growth.
The bottom line: Educate your networks on the details. DECLINE TO SIGN. Help save small business!
Your voice is critical. Help your family, friends and colleagues understand the dangers of this proposal. “Decline to Sign” says it all.
Stand with us on this critical issue by contributing to the Michigan Chamber PAC II.
Personal and corporate dollars are accepted via check or ACH. Contact Wendy Block with Qs or for further information.
All contributions to Michigan Chamber PAC II are voluntary and will be used for political purposes. Paid for with regulated funds by Michigan Chamber PAC II, 600 S. Walnut, Lansing, MI 48933. Contributions to Michigan Chamber PAC II are not deductible as charitable contributions for federal income tax purposes.
Paid for with regulated funds by the Michigan Chamber of Commerce, 600 S. Walnut St., Lansing, MI 48933. Authorized by Michigan Chamber PAC II.