Ballot proposal would raise taxes on higher incomes

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A statewide coalition of parents, educators, and advocates in Michigan is backing a ballot proposal that would raise more than $1 billion per year for public education.

If approved by voters in 2026, The “Invest in MI Kids” initiative would add a 5% surcharge on incomes above $1 million for couples and above $500,000 for single filers, aiming to fix disparities where billionaires now pay the same rate as teachers. Right now, Michigan ranks in the bottom ten nationally for funding equity.

Rachel Richards is with the Michigan League for Public Policy and says school funding is lacking in the state.

Recent research shows that there is a very significant gap between what we have been putting in and what is necessary in order to adequately educate our kids,” Richards said. “We’re talking billions of dollars in terms of that gap.”

Not everyone is on board, including the Small Business Association of Michigan. It argues the plan could function as a business tax, since many small firms file income through personal returns, hurting their ability to reinvest, hire, and grow.