NFIB Michigan State Director Amanda Fisher testified today before the Michigan Board of Canvassers, asking for changes to the 100-word summary on the petition for a proposed constitutional amendment which would enact a graduated income tax. The proposal would add an additional 5% tax on top of the current rate of 4.25% for single filers over $500,000 and joint filers over $1,000,000.

“Based on IRS data, at least two-thirds of the payers of this new graduated income tax will be Main Street business owners,” Fisher testified. “By not including the impact on small businesses, the current language is misleading and deceptive. Michigan citizens deserve to know all the facts about this proposed amendment so they can make an informed, unbiased decision.”

“It is not well known or understood by most people that the vast majority of small businesses pay business taxes at the individual income tax level,” continued Fisher. “For these small business owners, all of their net business income is taxed on the individual tax return of the owner, even if the owner draws no salary and takes no distributions of income. In truth, a large portion of the revenue derived from this tax will be on the back of small businesses.”

Fisher commended Board members Houskamp and Cordell for choosing to reject the petition language after the sponsors and the other members of the Board of Canvassers refused to address concerns expressed by NFIB and others, which, in addition to adding small business, included:

• Replace the term “tax” with “graduated income tax” in the 100-word summary
• Include the full rate of 9.25% (5% + the current income tax rate of 4.25%
• Remove any examples of how money is to be spent

NFIB will be encouraging all citizens who support small businesses in Michigan to decline to sign the petition to put this harmful constitutional amendment on the 2026 ballot.