Statement: State Budget Comes Amid Historic Challenges for Business

“While the state legislature was able to avoid a messy shutdown, the approved budget comes amid historic challenges for Michigan businesses. It lands as our employers face a disproportionate risk from tariffs, the trade war, and increasing uncertainty around electrification policies – all of which are disrupting our core industries including advanced manufacturing, agriculture, and automotive and mobility, and adding further financial strain to many of our hometown companies.

By itself, the decision to decouple state tax rates from the federal tax reforms in the One Big Beautiful Bill Act amounts to a massive tax hike on businesses and will make it much more expensive to invest in Michigan compared to other states. Other critical funding to drive economic development and other business priorities were reduced or stripped out of the budget, which will only further hamper Michigan’s global economic competitiveness.

While funding the roads is a critical investment, the state budget puts a higher burden on business over other road users and threatens employers’ ability to do what they do best – create jobs and drive economic growth.

For Michigan to emerge prosperous from these uncertain times, we need to make it easier and less costly to do business in our state. On this front, the approved budget falls short.”

Sandy K. Baruah, President and Chief Executive Officer, Detroit Regional Chamber