
The Board of Canvassers approved a 100-word summary that identified a petition to fund schools with a 5 percent tax increase for the rich but failed to approve the form because of time.
The original 100-word summary for the Invest in MI Kids petition did not identify the 5 percent increase for income taxes over $1 million for couples and $500,000 for single filers as a tax, but a surcharge. Eric Doster, representing Small Business for a Better Michigan, dealt the uppercut that knocked the surcharge to the mat by pointing out that it was even called a tax on the organization’s website and shirts worn by audience members.
“It says, ‘Tax the rich.’ It doesn’t say ‘surcharge the rich’,” Doster said.
Steve Liedel, the Invest In MI Kids attorney, conceded on the tax, but changed the argument that graduated didn’t need to be in the petition. The graduated tax was something that the business community said would run small businesses into the ground if it were passed.
The debate then settled into a rhythm over where the money for the tax would go, with Doster arguing that the tax could go toward more than was being presented in the 100-word summary.
The final summary came out to 73 words: “Constitutional amendment to : Add, beginning in 2027, an additional 5% tax on annual taxable income over $1 million for joint filers and over $500,000 for single filers. This tax is in addition to existing state income taxes, and is to be deposited into the State School Aid Fund and required to be used exclusively on local school district classrooms, career and technical education, reducing class sizes, and recruiting and retaining teachers; and subject funds to annual audits.”
The final vote of 3-1 vote came down to Board of State Canvassers Chair Richard Houskamp, who asked Liedel if Doster was correct that the funding could be used for more than what was presented in the 100-word summary.
“It’s a yes or no question,” Houskamp said.
Liedel said it the constitutional amendment did limit what the funding raised through the tax could be spent on and designated specific purposes,
Houskamp ended with voting yes to approve the 100-word summary and the supporters erupted in cheers.
“Hold on, calm down. You’re going to want to hear this,” Houskamp said.
He said they would need to come back on July 10 to talk about the approval of the form, and Invest In MI Kids wasn’t yet cleared for circulation.
Jessica Newman, the deputy political director of United for Respect, said they would be making sure that they have no issues with their petition form when they return.
“We’ve been working too long, and too hard not to make sure that our I’s are dotted and our T’s are crossed,” Newman said.
She said they have thousands of volunteers across the state waiting to start circulation of petitions, and they would be signing people up this weekend in Pontiac.
She said paid circulators were still on the table, but she was confident they had all the volunteers they needed to get the 446,198 signatures required in the 180-day window.
“We have folks all across the state. Technology is wonderful. We can train people remotely, wherever you live,” Newman said.
She said the initial investments for the petition came from public school unions, and there were other organizations supporting the measure by raising funds.
“We’re very confident that we will have the funding that we need to get this passed and over the finish line,” she said.
During a press conference held June 26, business organizations lined up in opposition, saying that the increase in income taxes would be a business killer.
Newman said several states have increased their taxes on high-income earners hasn’t resulted in people leaving because of that.
“This is a tax on income, it’s not a tax on businesses. So if we wanted to impose a tax on businesses, I think we would have said that in our state constitutional amendment,” Newman said.
She said places like Google and Amazon cited one of the reasons they didn’t pick Michigan for their second headquarters was the state of public education.
She said the funding would help hire teachers to reduce classroom sizes.
“We heard our opponents say that this could cure cancer, and you know what? They’re right. When we invest in our kids, we invest in our education. We are investing in the future researchers that will be our doctors, that will be our lawyers that will defend us and our human rights,” Newman said.
Article courtesy MIRS News for SBAM’s Lansing Watchdog newsletter
Click here for more News & Resources.