The proposed graduated income tax petition, which would increase taxes by 5% on high-income earners to support public schools, reached a standstill at the Michigan Board of State Canvassers this week. The board was unable to reach an agreement on the summary language for the petition, splitting evenly along party lines after six hours of discussion.
Brian J. Shoaf, Vice President of Public Policy and Business Advocacy for the Detroit Regional Chamber, spoke against the summary language during the hearing. “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,” Shoaf stated.
According to business groups, most individuals who would be affected by this tax are small business owners who file individual income taxes, outnumbering others three to one. The Chamber maintains that transparency and accountability in government spending should remain a priority from a business standpoint.
Although proponents of the ballot measure can now begin collecting signatures following the board’s deadlock, legal challenges may still arise before it can appear on a future ballot.
