Advocacy News – July 24, 2025
What happened: After a coalition led by the MI Chamber successfully advocated for the rescission of the previously approved language for the 100-word summary based on several legal concerns, the Board of Canvassers (Board) reopened the public comment period, restarting the clock on the initiative’s path to the ballot.
- The MI Chamber submitted formal comments on the biased and harmful draft language now before the Board.
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). As has been argued from the beginning, the impact on small and mid-sized businesses would be devasting as most of the impacted taxpayers are pass-through entities (like LLCs, partnerships, and S corps) where income is taxed at the individual level – meaning this change would hit these job providers directly.
- It is estimated that 2/3 or more of the taxpayers impacted by the proposed graduated income tax (GIT) are small and mid-sized businesses.
What’s next: The public comment period is now closed, and the Board will hold a hearing on the proposed language July 31 at 10 a.m.
- The MI Chamber will testify in opposition to the current language and advocate for a more honest and transparent explanation of the ballot proposal and its impacts.
The bottom line: 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.
Go deeper: Read more on the GIT and its threats to Michigan’s business community.
For questions contact Randy Gross.