In August, an organization funded by out of state progressive groups, calling themselves “Invest in MI Kids,” have begun collecting signatures to put a constitutional amendment on the 2026 ballot.

The proposal, under the guise of “Tax the Rich,” would impose a new tax bracket of an additional 5% on taxable income greater than $500,000 for single returns and $1,000,000 for joint returns of individuals for a combined rate of 9.25%. This includes business income taxed at the individual level for pass-through entities. Based on IRS data, at least two-thirds of the payers of this new graduated income tax will be Main Street business owners.

This proposal, which is expected to raise a little more than $1 billion, is designated for the School Aid Fund (SAF) and must be used to support classrooms in local school districts. However, there is no guarantee that the legislature will increase education funding by $1 billion, due to the workings of the budget process.

THIS IS WHERE YOU CAN HELP! NFIB has joined with other organizations to fight this harmful constitutional amendment. We want to be proactive and engage in both a “decline to sign” campaign to encourage people not to sign this (or most other) petitions. This will be in addition to an education campaign to show the negative impact this proposal would have on small businesses in Michigan.

We know that small business owners aren’t “rich”, and that most money they earn goes right back into their businesses – we need to make sure that the people of Michigan understand this too! Please take this survey to find out the different ways you can help prevent a graduated income tax in Michigan!