(The Center Square) – Business organizations met ahead of Friday’s Board of State Canvassers meeting to address concerns with two proposals which might appear on Michigan’s 2026 ballot, one on graduated income tax and a second on tipped wages.
The roundtable included members from many of Michigan’s leading business organizations, including the Michigan Chamber of Commerce and the Small Business Association of Michigan. They met to discuss what the coalition has labeled as two “dangerous” potential ballot proposals.
The first proposal is a constitutional amendment sponsored by Invest in Michigan Kids. It would add an additional 5% tax on all taxable income over $1 million for joint filers and $500,000 for single filers. This would be in addition to existing state income taxes,
Brian Calley, president and CEO of the Small Business Association of Michigan, had some strong words in opposition to the proposed amendment.
“Make no mistake that this proposal is a jobs killer. It would wreck Michigan small businesses, and that’s the same thing as wrecking the Michigan economy,” Calley said at the roundtable.
Supporters of the amendment argue it will raise much-needed money for Michigan public schools.
“Once this is on the ballot (and then passes), it will change the state constitution to make sure the rich pay their fair share,” said Michigan Education Justice Coalition.
Jim Holcomb, president and CEO of Michigan Chamber of Commerce, argued at the roundtable that the amendment won’t just hurt Michigan’s most-wealthy though.
“It’s impacting everyone. It’s not just businesses. It’s all citizens in Michigan. The damage this will cause to our economy will have a ripple effect through to everyone,” Holcomb said. “We need to have smart policies. We need a debate that’s going to focus on how to grow Michigan’s economy, not make it more costly and burdensome.”
The second proposal is a referendum sponsored by Voters to Stop Pay Cuts. It would repeal Public Act 1 of 2025, which raised the state minimum wage to $15 by 2027. If passed, it would return the state to previous legislation which totally phased out the tipped wage system.
Supporters of the referendum argue it is needed to help Michigan workers earn fair wages. Members of the coalition argued that a bipartisan solution was already approved when Republicans and Democrats came together to successfully pass Public Act 1.
“It has gone through the vetting process, it has been approved and is supported by Michiganders,” said Justin Winslow, president and CEO of Michigan Restaurant & Lodging Association. “There’s no need for a referendum on this.”
Calley added that it will hurt Michigan’s economy.
“This is a damaging proposal for the economy, for small businesses, larger businesses, but especially for workers,” he said.
On Friday, the Board of State Canvassers are meeting to debate the language of both proposals, which must be presented in a 100-word summary to voters. According to state law, the board must determine whether the language of the summaries are “true and impartial.”
Opponents of the income tax amendment argue that the language of the amendment is too unclear.
“The Board of State Canvassers’ job is certainly clear, but that doesn’t mean that it isn’t controversial. They’re charged with checking the petition compliance and adopting a title and a 100 word summary . . . that is really true and impartial,” Holcomb said. “It’s full of really feel-good messaging . . . the Board of State Canvassers has the opportunity and the obligation to see through that type of gimmick.”
The Detroit Regional Chamber, West Michigan Policy Forum, Grand Rapids Chamber of Commerce, National Federation of Independent Businesses, Michigan Manufacturers Association, and the Homebuilders Association of Michigan are all also a part of the coalition opposing the proposals.
The proposals must be approved by July 10, when they will then move into the signature phase of the process. To be placed on the November 2026 ballot, each must receive 330,000 signatures by March 2026.
