Detroit Regional Chamber > Advocacy > Deadline July 21: Oppose the Graduated Income Tax

Deadline July 21: Oppose the Graduated Income Tax

July 21, 2025

The Michigan Board of Canvassers is accepting public comments on the proposed ballot summary language for a graduated income tax to appear on the November 2026 ballot. It is critical that the language presented to voters is transparent and accurately describes the proposal’s true impact.

The summary submitted by the advocacy group pushing for the graduated income tax is misleading and fails to inform voters of several key points. The Detroit Regional Chamber asks its members and business leaders to submit a public comment to the Board of Canvassers by the end of the day today, Monday, July 21, urging them to ensure the ballot language is fair and accurate.

Please consider including the following points in your comment:

It is a tax on small business. The proposal would significantly increase the tax burden on Michigan’s small and family-owned businesses. By design, it would target pass-through businesses like S-corps, LLCs, and partnerships whose owners file business income on their personal tax returns. However, this fact is omitted from the proposed summary.

It is a graduated income tax. The summary deceptively calls the proposal a “surcharge.” It is a graduated income tax that creates new tax brackets for higher earners — a system currently prohibited by the Michigan Constitution. The language must clearly state that this proposal would create a new graduated income tax.

Education funding is not guaranteed. The summary implies that new revenue is guaranteed for specific educational purposes, but the proposal provides no such guarantee. Any new revenue is subject to appropriation by the state legislature, which is not bound to spend it as the summary suggests.