Detroit City Wire

The Detroit Regional Chamber is urging its members to oppose a proposed increase in Michigan's Corporate Income Tax (CIT). The tax hike, which would raise the CIT by over 40% to 8.5%, aims to fund road maintenance and rebuilding efforts. However, the Chamber argues that this increase could have negative consequences for Michigan's economy.

The Chamber points out that such an increase would make Michigan's CIT rate the seventh highest in the United States. They express concern that this could threaten jobs and economic stability, particularly impacting small businesses. According to the Chamber, "9 in 10 'corporations' in Michigan are small, local businesses," which would bear the brunt of approximately $800 million annually in new taxes.

While supporting infrastructure improvements, the Chamber suggests exploring alternatives like government efficiencies, budget prioritization, and user fees instead of raising taxes.

To counteract the proposal, the Chamber encourages business leaders and its members to contact state legislators or join a coalition letter opposing the CIT increase. Members can also receive assistance from the Chamber’s Public Policy and Business Advocacy team for reaching out to legislative leaders.

The Chamber remains committed to updating its members on developments related to this issue and providing necessary resources.