Michigan businesses are under threat – again. Two harmful tax proposals are gaining traction in Lansing that could directly impact your operations, workforce and bottom line. Here’s what’s happening — and how we can work together to stop it: |
Threat #1 | Graduated Income Tax ballot proposal |
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MI Chamber President & CEO Jim Holcomb and fellow business leaders hosted a virtual media briefing to push back on misleading information and underscore the consequences of pending high stakes ballot proposal on Main Street businesses, communities and the broader economy. What’s happening: A proposed 2026 ballot initiative would amend Michigan’s Constitution and undo our state’s long-standing ban on a graduated income tax — replacing our flat tax system with a “surcharge” on higher earners. Why it matters: This historic tax increase would be particularly devastating to smaller to mid-size businesses, many of which are pass-through entities (sole proprietorships, partnerships, S corporations, LLCs) whose income is taxed at the owner’s individual rate, and a negative economic ripple effect. ⚠️This policy would more than double the income tax rate — from 4.25 to 9.25 — for individuals earning $500K or more and for couples earning $1M. That means this tax does not go after “the rich” — it goes after the business owners who provide jobs and economic opportunity, who reinvest locally, and who are now trying to survive inflation, talent shortages and regulatory overload. It also would:
What’s missing: There are also no real guarantees on how the money would be spent. The proposal lacks specifics on how results would be delivered or measured — yet imposes permanent, sweeping tax changes. What’s next: The Michigan Chamber will be relentless against this attack on Michigan businesses and showcasing the catastrophic impact this would have across our communities and state’s economy.
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Become a member today. Whether it’s stopping bad policy or helping businesses stay compliant, access resources or make connections, the Michigan Chamber is here for you. |
Threat #2 | Corporate Income Tax hike |
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What’s happening: Some lawmakers are pushing to raise Michigan’s Corporate Income Tax (CIT) from 6% to 8.5% — a 40% increase — to fund road repairs. Why it matters: Michigan already lags the country in population growth, talent retention and business investment. This tax hike would hurt job providers and weaken our competitiveness — especially against states like Indiana and Ohio, which already have lower business tax rates. The bottom line: Despite the name, this tax hike doesn’t hit just big corporations. Nearly 90% of Michigan’s CIT filers are small and mid-sized businesses — the ones like you fueling our local economies and creating jobs.. ⚠️If passed, this would:
Find out what this could cost you: Use our CIT calculator. What’s next: The Michigan Chamber is uniting businesses across the state to stop this harmful proposal and find a better way to fix our roads.
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🛡️Your strongest defense: MI Chamber membership🛡️ |
Now more than ever, Michigan businesses like yours need a steady, experienced advocate to protect your interests. When you join the Michigan Chamber, you gain: ✅A powerful voice at the Capitol standing up for your business. 🗳️Voted again in 2025 as the most effective membership organization —now 20 years running. ✅Trusted compliance tools and resources ✅Real-time alerts and insider updates so you can stay ahead ✅A statewide network Membership that means more. Join the movement. Add your voice. Protect your future. |
👉 Learn more and become a Michigan Chamber member today. Take advantage of a $500 base rate for 12 months. Questions? Contact Amanda Toy — we’re here to help protect, connect and strengthen Michigan businesses. |
