Advocacy News – July 10, 2025
What’s happening: The Michigan Board of State Canvassers voted 3–0 today to rescind its previous approval of the summary language for a proposed constitutional amendment on the November 2026 ballot that would create a graduated income tax (GIT) in Michigan – a proposal with serious implications for small and mid-sized businesses.
- The move comes after a coalition led by the MI Chamber raised legal concerns about flaws in the approval process and the lack of transparency in the 100-word summary. The Board has now reopened the public comment period, restarting the clock on the initiative’s path to the ballot.
Why it matters: The proposed amendment would change Michigan’s longstanding flat income tax, doubling the rate of those with income over $500,000 (single filers) and $1 million (joint filers) – making MI the 7th highest income tax rate in the country and highest in the Midwest, nearly tripling Indiana and Ohio’s rates (3% and 3.5% respectively).
- This wouldn’t just impact higher earners because most small and mid-sized businesses are pass-through entities (like LLCs, partnerships and S corps) where income is taxed at the individual level – meaning this change would hit Main Street job providers directly.
- Beyond the policy impact, the MI Chamber raised serious concerns about the previous approval process. The Board agreed that the process had not met its standards and voted unanimously to revisit.
What’s next: The public comment period is now open for seven days. The Board will likely revisit the revised language at its August meeting, but could choose to have a special meeting to consider the issue. The MI Chamber will again lead efforts to advocate for fair and accurate language that reflects the real-world impact of the proposal.
The bottom line: This is a temporary but important win for Michigan businesses. The MI Chamber remains steadfast in stopping harmful tax policy – and ensuring any process to make such sweeping change is transparent and accountable every step of the way.