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Michigan’s Top Earners Would Pay More Under Contested School Funding Proposal

August 28, 2025

A proposed constitutional amendment by 482 Forward aims to increase school funding by implementing an additional 5% tax on high-income earners - specifically on annual taxable income over $1 million for joint filers and $500,000 for single filers. The initiative faces opposition from business groups like the Detroit Regional Chamber, which argues the tax would harm economic competitiveness and small businesses. Though the Board of State Canvassers initially approved the petition language, they later rescinded approval, resulting in a deadlock at a subsequent meeting over concerns about fund allocation.

Who is affected

  • Wealthy Michigan residents with taxable income exceeding $1 million (joint filers) or $500,000 (single filers)
  • Michigan school districts and their students
  • Small business owners who file taxes through individual income tax returns
  • Michigan voters who are being asked to sign the petition
  • Teachers (who would benefit from recruitment and retention funds)

What action is being taken

  • 482 Forward is actively collecting petition signatures in Detroit, Ferndale, and Southfield
  • The Coalition to Stop the Business and Family Tax Hike has sent a cease and desist letter to Invest in MI Kids
  • Business groups including the Detroit Regional Chamber are publicly opposing the initiative
  • The petition language approval process is continuing through state channels despite procedural complications

Why it matters

  • The proposed amendment would add an additional 5% tax on high-income earners starting in 2027
  • The funds would be exclusively dedicated to local school district classrooms, career and technical education, reducing class sizes, and recruiting and retaining teachers
  • Business groups argue the tax would harm Michigan's economic competitiveness and potentially impact small businesses
  • The proposal would constitutionally mandate that these tax revenues undergo annual audits
  • The tax would more than double the income tax rate for affected taxpayers

What's next

  • The petition language must still receive final approval from the Board of State Canvassers
  • If not approved by the state board, 482 Forward plans to appeal to the Michigan Supreme Court
  • Signature collection will continue with the goal of placing the amendment on the ballot

Read full article from source: Michigan Chronicle

Michigan’s Top Earners Would Pay More Under Contested School Funding Proposal