Detroit City Wire

On July 10, the Board of State Canvassers revoked its previous approval of the "Invest in MI Kids" graduated income tax increase ballot proposal. The Detroit Regional Chamber and the business community played a role in this decision by highlighting procedural errors from an earlier meeting where the language was initially approved.

The proposed constitutional amendment would impose a 5% tax on annual taxable income over $500,000 for single filers and $1 million for joint filers. Revenue generated would go to the state school aid fund.

This measure represents a significant tax increase that could more than double the income tax rate for many businesses, including numerous small businesses filing taxes through individual returns. However, these funds would not be directed to Detroit's public or charter schools.

The Chamber expressed concerns about potential harm to Michigan's economic competitiveness if this measure alters the state's tax code. Although described as a "surcharge," it effectively establishes a 9.25% bracket for many business owners.

The Chamber will continue opposing this tax increase and keep members informed about further developments.