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Wrong road, real cost: Proposed Corporate Income Tax hike bad timing, bad policy – get involved today

Advocacy News – April 18, 2025

What’s happening: Some state lawmakers are proposing a more than 40% increase in Michigan’s Corporate Income Tax (CIT) – from 6% to 8.5% – to pay for road repairs.

Why it matters: This “corporate” tax hike would hit Michigan’s small businesses the hardest.

  • Nearly 9 in 10 businesses paying the CIT are small, local employers.

  • $800 million/year in new taxes would be put on the backs of a small share of Michigan employers. That’s not fair, sustainable or smart.

  • Michigan’s CIT is higher than half the country, including key Midwest competitors like Ohio and Indiana. This proposal would jump our Great Lakes State to the 7th highest CIT rate nationwide.

The result? Fewer jobs, slower growth and a weakened business climate.

The Chamber’s stand: Enough is enough. The Michigan Chamber is ramping up efforts to stop this damaging tax hike with a full advocacy effort, including:

  • A new landing page with tools and facts.

  • A petition that you can sign to raise your voices and get involved.

  • A CIT calculator so employers can see how much this proposal would cost their business.

The message: Michigan roads need work – but not at the expense of job creators and our state’s economic future.

Go deeper: Check out this one-page overview or our recent MI Business Matters podcast on this topic today. For questions and to get involved, contact Randy Gross.