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Politics & Government

Group launches effort to put graduated income tax proposal on ballot this fall

person signing a petition while another holds a clipboard
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Fair Tax Michigan is a self-proclaimed grassroots coalition hoping to add a graduated income tax proposal to the ballot this fall.

The group submitted language to the Board of State Canvassers that would replace the current flat income tax rate of 4.25% with a tiered plan taxing higher earners at higher rates.

Eli Isaguirre is the campaign manager for Fair Tax Michigan. He says the campaign is made up of community groups from all over the state.

"I think we’re seeing over and over across the state communities step up to fund issues locally. I think folks will see this as a solution to some long standing problems," he says.

The proposal would amend the state’s Constitution. Language from the petition states the change would generate more than $1.5 billion in net revenue annually. Isaguirre says taxes for those making $175,000 or less annually and those filing jointly with an income of $350,000 or less would go down. He says the new revenue would go toward schools, roads, and water infrastructure the state desperately needs to improve.

"More states than not have a graduated income tax and we have less money year over year to fund the things that really make our state competitive," says Isaguirre.

Public comment on the petition will be accepted through March 6. The Board of State Canvassers has until April 3 to approve or reject the proposal language.

Isaguirre was a guest on Stateside.

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