NFIB challenges the interpretation of the Michigan Income Tax Act
LANSING, MI (March 26, 2024) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, late yesterday appealed to the Michigan Supreme Court its litigation over the Michigan Income Tax Act and whether the income tax cut triggered in 2023 should expire or remain permanent.
“NFIB is hopeful that the Court will hear this case and recognize the need for clarity on the income tax rate for Michiganders,” said Amanda Fisher, NFIB Michigan State Director. “We urge the Court to affirm the permanence of the tax cut going forward.”
Last year, NFIB along with the Mackinac Center for Public Policy and several others filed suit against the Michigan Department of Treasury’s decision to raise the personal income tax rate back to 4.25% in 2024. The rate was lowered to 4.05% last year thanks to a 2015 law that created a tax cut trigger. The trigger automatically lowers taxes when state revenue outpaces inflation by a set amount.
Small business owners consistently rank tax-related issues as a top concern for their small businesses, including “State Taxes on Business Income,” “Tax Complexity,” and “Dealing with IRS/State Tax Agencies.”
The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.
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For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
