Key Ballot Proposals Aimed at Michigan’s 2026 Election

This article appeared in the October 2025 issue of MiMfg Magazine. Read the full issue and find past issues online.

Several potential ballot initiatives aiming for the 2026 election could have lasting effects on the state’s business climate.

Progressive Income Tax Proposal

An organization called Invest in MI Kids is promoting a constitutional amendment to add a new 5 percent tax surcharge on individuals earning more than $500,000 — or $1 million for joint filers. Supporters market the proposal as a “Tax the Rich to Pay for Schools” initiative, estimating it would generate $1.7 billion annually for K-12 education.

But the proposal is not as simple as its slogan suggests. Nearly two-thirds of the taxpayers affected would be small businesses, including a significant portion of Michigan manufacturers. For some, this would effectively raise their tax rate to 9.25 percent, one of the highest in the nation.

“This is a devastating blow to the very employers who keep Michigan’s economy running,” MMA testified before the Michigan Board of State Canvassers. “Voters deserve to know this tax will hit small businesses in every community across the state.”

After successfully delaying the Board’s initial approval of the petition summary, arguments presented by MMA and the broader business community resulted in a deadlock along party lines on whether the ballot description should clearly note the impact on small businesses. That deadlock allows proponents to proceed with collecting the 446,198 signatures required to make the ballot, and signature-gathering efforts are expected to intensify this fall.

If approved, the measure would not only eliminate Michigan’s constitutional flat requirement but also risk undermining the competitiveness of small and mid-sized manufacturers that already operate on tight margins.

Attack on Corporate Free Speech

Another emerging ballot proposal would significantly restrict business advocacy in Michigan. Backed by Michiganders for Money Out of Politics, the amendment seeks to prohibit electric utilities and any business holding state contracts larger than $250,000 from contributing to political campaigns or participating in related activities. More importantly, would prohibit businesses and organizations like MMA from expressing any political free speech.

MMA has joined with other business organizations to battle the measure, which amounts to a direct assault on constitutionally protected free speech. In testimony to the Board of Canvassers, MMA urged the board to ensure voters fully understand that the proposal would silence companies from participating in the political process.

If enacted by the voters, the measure could severely limit the ability of Michigan manufacturers to advocate for sound public policy on issues that directly affect jobs, investment and economic growth or advocate for or against the election of candidates.

Other Proposals in Circulation

Additional initiatives under discussion include authorization for a constitutional convention (which automatically appears on the ballot every 16 years), a proposal to eliminate property taxes, a ranked-choice voting system, a requirement to prove a person’s citizenship before they are allowed to vote, and a referendum on Michigan’s tipped wage law.

Looking Ahead

MMA anticipates a crowded 2026 ballot and is preparing to ensure manufacturers’ voices are heard.

For manufacturers, the stakes are clear: the progressive income tax proposal and political contribution limits could both undermine competitiveness, restrict free speech and reduce Michigan’s appeal as a place to grow and invest. MMA will remain active in advocating for transparency, fairness and policies that protect jobs and families across the state.