Picture a gigantic piggy bank that needs filling, and a new ballot initiative for 2026 just decided that Michigan should go all in to fix it…using someone else's money, of course! Specifically, the rich. The new proposal wants to slap extra taxes on rich people to fund schools, but business folks are shouting, “Wait, what?!” They’re worried it’ll hit small businesses and scare off investors faster than a cat spotting a cucumber.
Here are Five Fast Facts about the potential tax spike for the rich in Michigan:
- 📈 Amp It Up - The plan would add a 5% surcharge onto incomes over $500K individually or $1M per couple, pushing the top tax rate up to about 9.5%, more than double today’s 4.25% flat tax. So yeah, the most successful will get the nifty privilege of paying extra. #lucky
- 🏫 Tiny Group, Big Impact - Only about 60,000 high-earners out of 4.9 million taxpayers would pay this extra, generating around $1.7 billion annually, all earmarked for schools. Show of hands for who thinks all that money will actually go to schools...?
- 😣 Pass-Through Pain - The catch is that many small businesses are “pass-throughs,” meaning all of their profits get taxed at the owner’s rate. That surcharge would hit those business owners too...even if they just barely cleared $500K in actual take-home pay. Congratulations, now pay more!
- ⚓ Michigan’s School Scores Sinking - Michigan ranks near the bottom in education nationwide. School advocates argue more money could help, but record educational spending hasn't helped the state to climb out of the basement in outcomes. Critics point out that dumping even more cash into it without accountability and policy changes won’t fix anything. But you know, they're only saying that because it hasn't happened yet. It'll probably be different this time.
- 💨 Business Fears of Exodus - Business groups worry this extra tax might scare away companies and wealthy folks because states like Florida and Texas are over there singing, “No taxes here!” To be fair, it is a pretty persuasive point...
🔥Bottom line: So, Michigan’s debating whether to charge the rich a mega surcharge to fund schools. Sound fair? Depends on who you ask. Some say “about time” but others say “don’t be a scarecrow, jobs will fly away.” Voters could see this on the 2026 ballot if organizers gather enough signatures. One thing’s for sure: this tax proposal is shaping up to be quite the political showdown—grab your popcorn!
Would you vote for this initiative if it got on the ballot?
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