Great Lakes Wire

NFIB, a prominent small business advocacy group in Michigan, has expressed its views following the Board of Canvassers meeting. The board discussed two petitions: one for a constitutional amendment to introduce a graduated income tax and another for a referendum to repeal Public Act 1 of 2025, which would eliminate the tipped wage. Proponents will now circulate these petitions.

Amanda Fisher, NFIB Michigan State Director, commented on the proposed constitutional amendment. This amendment aims to impose an additional 5% tax on income exceeding $500,000 for single returns and $1,000,000 for joint returns, including business income taxed at the individual level. The combined rate would be 9.25%, starting with the 2027 tax year.

Fisher stated, “This proposal is a direct attack on the Main Street businesses who pay their business taxes through the individual income tax. Michigan small businesses are integral to our cities and towns by providing both jobs and community support. Instead of raising taxes on the wealthy, this proposal pulls a ‘bait and switch’ that actually kneecaps these small business owners by increasing their business taxes by over 117%.”

Regarding the referendum to repeal Public Act 1 of 2025, Fisher expressed concern about efforts to eliminate the tipped wage. She remarked, “We are disheartened that out of state dark money groups continue to undermine the will of Michigan restaurant servers and owners in their effort to eliminate the tipped wage. After the hard-fought bipartisan compromise represented in Public Act 1 of 2025, small business owners, especially those in the much-beleaguered restaurant industry, now face more uncertainty knowing that changes to minimum wage could occur at any time. We would urge voters to decline to sign this proposal.”