This week, the graduated income tax petition proposal, which seeks to implement a 5% income tax increase on high-income earners to fund public schools, faced a deadlock at the Board of State Canvassers.
The Detroit Regional Chamber’s Brian J. Shoaf, Vice President of Public Policy and Business Advocacy, testified in opposition to the petition summary language. After six hours of discussion, the panel split 2-2 along party lines on amended summary language, defeating the language suggestion.
“When voters hear promises about new tax revenue for fixing our schools, they deserve more than vague language—they deserve transparency. Let’s not repeat history. Let’s demand clarity, not just comforting headlines.”
– Brian J. Shoaf, Vice President, Public Policy and Business Advocacy
The Chamber has consistently voiced significant concerns regarding the proposal’s language, particularly its potential impact on small businesses. The Chamber believes that the current summary is misleading and fails to adequately inform Michigan citizens of the full implications of the proposed amendment. The business community has highlighted that a majority of those who would be affected by this tax are small business owners who file individual income taxes, by a margin of three to one.
The Chamber remains committed to advocating for policies that prioritize transparency and accountability in government spending from the business community’s perspective. The proponents of the ballot proposal will be able to begin collecting signatures from here, but the potential for legal action remains.
With this in mind, if you are asked to sign a petition for Invest In Michigan Kids: 5% income tax increase, please use discretion.