Advocacy News – March 13, 2026
What happened: A proposed ballot initiative to amend Michigan’s constitution and impose a hefty graduated income tax increase on individuals earning $500,000 or more per year ($1 million for joint filers) has suspended its campaign after falling short of the necessary signatures to qualify for the 2026 ballot.
- Organizers of the so named “Invest in MI Kids” campaign collected just under 250,000 signatures, well short of the 446,198 required.
- Campaign leaders told volunteers they did not see a path forward to gathering the remaining signatures this year, but that this isn’t the end of their efforts, only the beginning.
Why it matters: Despite being promoted as a tax on only the most wealthy, a nonpartisan study from the nationally recognized Tax Foundation – commissioned by the Michigan Chamber Foundation – found the proposal would severely impact small and medium-sized businesses structured as pass-through entities like sole proprietorships and LLCs, the heart of Michigan communities and economy. The additional tax burden would have resulted in fewer jobs, lower wages and reduced competitiveness.
MI Chamber perspective: This development is welcome news for Michigan employers. While we support investing in students and strengthening schools and educational outcomes – priorities that are essential to our state’s future workforce and economic success – this proposal didn’t do that.
- Major tax policy changes – particularly those embedded in the state constitution – must ensure they don’t create unintended consequences and stifle economic growth, job creation and opportunity across Michigan.
What’s next: Supporters say they plan to continue organizing and will revive the initiative in a future election cycle, meaning the business community will need to remain engaged on the issue.
Bottom line: The campaign’s suspension removes a major tax increase proposal on job creators from the 2026 ballot. It also highlights the importance of careful consideration before making permanent changes to Michigan’s constitution and tax structure.