Proposed Michigan ballot initiative aimed at creating a graduated income tax has been suspended

Chamber

Economic

19 Mar 2026

A proposed Michigan ballot initiative, known as “Invest in MI Kids,” aimed at creating a graduated income tax for high earners has been suspended after failing to gather enough signatures to appear on the 2026 ballot.

Supporters collected just under 250,000 signatures, falling short of the required 446,198, and have paused efforts for now—though they plan to revisit the proposal in the future.

While the initiative was positioned as a tax on wealthy individuals, studies indicated it could have significantly impacted small and medium-sized businesses structured as pass-through entities, potentially leading to job losses, lower wages, and reduced economic competitiveness.

The Michigan Chamber views the pause as positive for employers, emphasizing the importance of supporting education without creating unintended economic consequences.

Bottom line: The proposal is off the 2026 ballot for now, but it may return in a future election cycle, making it an issue to watch.