Great Lakes Wire

Amanda Fisher, the Michigan State Director for the National Federation of Independent Business (NFIB), addressed the Michigan House Finance Committee today. She expressed support for House Bill 4170, which proposes reducing the income tax rate from 4.25% to 4.05% and aims to ensure that future reductions remain permanent.

In 2015, a legislative provision was introduced stating that if budget surpluses exceeded inflation, there would be a permanent reduction in the income tax rate corresponding with revenue growth. This rate reduction was activated in 2023. However, Governor and legislative majorities contested its permanence. In response, NFIB filed a lawsuit with the Mackinac Center for Public Policy and others in August 2023, arguing for the permanency of the 2023 tax cut.

"Most of our small business members are organized as 'pass-through' businesses, meaning their business income is paid at the Michigan income tax rate," said Amanda Fisher. "By not recognizing the permanency of the rate change, the Governor and legislature essentially gave small businesses and citizens a tax hike. This legislation would restore the tax reduction that taxpayers of Michigan were promised in the 2015 legislation."

Fisher also expressed gratitude towards Rep. Kathy Schmaltz (R-46) and members of the House Finance Committee for prioritizing this bill: “We’re thankful to bill sponsor Rep. Kathy Schmaltz (R-46) and members of the House Finance Committee for prioritizing this legislation, and we are hopeful that the Michigan Legislature will pass this important legislation for Main Street.”

The NFIB recently released its 2025 Main Street Agenda highlighting key issues such as restoring income tax reductions. According to NFIB’s Problems and Priorities survey, "state taxes on business income" remain one of the primary concerns for small businesses across America.