Advocacy News – March 7, 2025
What’s happening: House Democrats have introduced legislation – House Bill 4144 (Rep. Alabas Farhat, D-Dearborn) – to raise the Corporate Income Tax (CIT) by more than 40% as a proposed funding source for the Governor’s road proposal.
Why it matters: Michigan’s chronic underfunding of road maintenance and rebuilding has led to the Great Lakes State having some of the worst transportation infrastructure in the country. However, placing the burden of funding the roads solely on the backs of Michigan businesses would have a chilling effect, putting jobs and the economy at severe risk.
What we’re saying: The Chamber’s 2025-26 Legislative Priorities call for supporting an impactful, long-term, fiscally sustainable infrastructure investment plan that starts with rethinking how existing tax dollars are allocated and spent.
The MI Chamber is strongly opposing the bill – and any other CIT increase. Such a move would create stifling tax policy, jeopardizing our state’s business climate and economic competitiveness while also not being an appropriate or sustainable revenue source.
- 9 of 10 businesses that pay the CIT have fewer than 100 employees and are already facing higher costs and economic headwinds from supply chain disruptions, labor shortages and inflation.
- Michigan’s CIT is already higher than half the country, including Midwest competitors like Ohio and Indiana. In fact, 16 states cut their CIT rates since 2018. Moving in the opposite direction will halt future business investment and economic growth.
What’s next: Hearings will begin shortly in the House of Representatives on Speaker Hall’s alternative proposal to funding roads, which does not include a CIT increase. These hearings, along with the budgeting process, will drive any possible road funding solution.
Take action today: Tell lawmakers why this is simply the wrong direction for Michigan. Click here to send a message or share how a CIT increase could hurt your business and ultimately your employees and community too.
Go deeper: Read the fast facts leave-behind we’re sharing with policymakers on the dangers of increasing and relying on the CIT.Contact our Business Advocacy team with Qs or feedback.