School tax ballot initiative begins gathering signatures
The proposal is a constitutional amendment sponsored by Invest in Michigan Kids. It would add an additional 5% tax on all taxable income more than $1 million for joint filers and $500,000 for single filers. This would be in addition to existing state income taxes.
'Michigan's children have been paying the price for decades of disinvestment,' said Rachelle Crow-Hercher, from the Invest in MI Kids campaign, in a statement. 'This initiative helps move us closer to ensuring every child—regardless of race, place, or background—has access to the resources they need to succeed.'
Advocates have labeled the tax a 'small, fair share surcharge.'
Many groups have already joined to push back against the initiative, including Americans For Prosperity, the Michigan Chamber of Commerce and the Small Business Association of Michigan.
Those organizations have labeled the initiative 'dangerous.'
'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,' said Brian Calley, president and CEO of the Small Business Association of Michigan, as previously reported by The Center Square.
Advocates for the initiative argue against that claim, saying it will only tax the richest Michiganders, while raising much-needed money for Michigan public schools.
Small business owner Jordan Else from Ann Arbor, testified before the Michigan Board of Canvassers in support of the proposed 100-word summary of the initiative.
'I want to directly address the claim that this initiative is a 'small business tax'. It's not. It's a tax on the very wealthiest individuals, those making more than 99% of Michiganders. The vast majority of small business owners, like myself, won't be affected at all,' Else said. 'What does affect us is the strength of our public schools. We rely on a well-educated workforce, on students graduating with practical skills, and on strong communities that attract families and customers.'
The proposed amendment joins six other proposals that have received approval and are in the process of gathering signatures. One proposal is already set to appear on the ballot.
Each proposal must be presented in a 100-word summary to voters. According to state law, the Board of Canvassers is required to determine whether the language of the summaries is 'true and impartial.'
Since 1986, Michigan voters approved 34 ballot proposals, defeating 31.
A spokesperson for Invest in Michigan Kids told The Center Square it is aiming to collect 700,000 signatures, despite only needing 450,000. This will help account for the margin of error as signatures are validated.
Invest in Michigan Kids anticipates the amendment would generate nearly $1 billion for Michigan schools annually.
The current language for the initiative is as follows:
'Constitutional amendment to add, beginning in 2027, an additional 5% tax on annual taxable income over $1 million for joint filers and over $500,000 for single filers. This tax is in addition to existing state income taxes, and is to be deposited into the State School Aid Fund and required to be used exclusively on local school district classrooms, career and technical education, reducing class sizes, and recruiting and retaining teachers; and subject funds to annual audits.'
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