On June 26, Chamber President and Chief Executive Officer Sandy K. Baruah joined other business community leaders in a virtual press conference to raise concerns about two potential ballot proposals that Michigan citizens may be asked to support: a Graduated Income Tax and a referendum on Michigan’s Minimum Wage law.
Chamber Opposes Permanent Graduated Income Tax
June 30, 2025
“The proposed permanent 5% tax on those earning north of $500,000 annually will dissuade businesses wanting to move to the state and discourage small business growth. Existing business tax rates in Michigan are already a reason many companies opt to do business elsewhere, and this would give site selectors one more reason to put Michigan in the “Do Not Consider” column. The Detroit Regional Chamber knows how important supporting and appropriately funding education is for the state’s prosperity and proves it by operating the state’s most robust education and talent program to ensure just that. However, throwing money at a problem isn’t always the best or only solution, especially when it stands to harm the economy more broadly. This is a new permanent doomsday tax that can’t be cut.”
– Sandy K. Baruah, President and Chief Executive Officer, Detroit Regional Chamber
Graduated Income Tax Proposal
What it is: The proposal more than doubles the income tax rate (from 4.25% to 9.25%) on small- and medium-size businesses and individuals that pay their taxes via the personal income tax (sole proprietorships, LLCs, partnerships, S-Corporations) that earn more than $500,000 as in individual or $1 million if filed jointly.
Why it matters: The proposed permanent tax on earnings north of $500,000 annually will dissuade businesses wanting to move to the state and discourage small business growth. It would be the only Michigan tax that couldn’t be cut without amending the constitution, no matter how much it impacts the economy or how many jobs it kills. Existing business tax rates in Michigan are already a reason many companies opt to do business elsewhere, and this would give site selectors one more reason to put Michigan in the “Do Not Consider” column.
Referendum on Michigan’s New Minimum Wage Law
What it is: In February 2025, the Legislature passed Senate Bill 8 in a bipartisan fashion to set a new minimum wage level in Michigan. This referendum would pause Michigan’s law in the short term and attempt to implement what the Supreme Court ruled in July 2024.
Why it matters: Immediately pausing Michigan’s minimum wage law will lead to compliance uncertainty and chaos for employers and employees.
Related | Michigan Businesses Gear Up for Fights Over Graduated Income Tax, Minimum Wage