AFP-Michigan Blasts Dangerous Tax Hike Proposal Approved by Board of State Canvassers

Jul 31, 2025 by AFP

LANSING, MI – The Board of State Canvassers today deadlocked and halted a misleading and harmful ballot proposal that would have more than doubled Michigan’s income tax on many small and midsized businesses. The Board voted 2–2 to reject the substance of a proposed constitutional amendment that would raise Michigan’s income tax to 9.25% for income over $500,000 for single filers ($1,000,000 for joint filers).

AFP-MI Activists, business leaders, and several small business owners publicly commented during the Board of State Canvassers meeting, warning that the proposal would drive up costs, kill jobs, and damage local economies across the state. While framed as a tax on “the rich,” this change would have hit thousands of pass-through small businesses whose income is taxed at the individual rate.

AFP-MI State Director Tim Golding issued the following statement:

“This proposal didn’t target the ultra-wealthy—it targeted the backbone of Michigan’s economy: small and midsized businesses. At a time when job creators are already battling workforce shortages and inflated costs, this tax hike would have crushed growth and driven opportunity out of Michigan.

“AFP-MI mobilized to ensure the public understood the full impact of this plan. We will not sit on the sidelines while a job-killing tax scheme moves forward under the guise of fairness.”

If passed, this dangerous ballot proposal would have:

More than doubled the income tax rate for small businesses from 4.25% to 9.25%
Created a graduated income tax in Michigan
Pushed Michigan to the 7th highest income tax rate in the nation and the highest in the Midwest—nearly triple the rates of neighboring states like Indiana and Ohio
Penalized business success while discouraging investment and job creation
Accelerated the population and talent drain to states with more competitive tax climates

AFP-MI launched an extensive online digital and social media campaign drawing attention to this disastrous proposal. We will continue working alongside job creators, community leaders, and grassroots activists to defeat future reckless proposals and protect economic opportunity across Michigan.