MI
Michigan HB 6134: Proposal to Raise Corporate Income Tax Rate and Redirect Revenue
Michigan House Bill 6134 would increase the state's corporate income tax rate and change how the revenue collected from that tax is distributed. The bill amends existing state tax law to set a higher rate on corporate income and revises the formula or destinations for where that tax money goes once collected. The bill was introduced in the Michigan Legislature and electronically reproduced in late June 2026.
✓ REASONS TO SUPPORT
- Raising the corporate tax rate could generate more state revenue, potentially funding public services like education, infrastructure, or healthcare.
- Shifting more of the tax burden to corporations may reduce pressure on individual Michigan residents and small businesses.
- Revising how tax revenue is distributed could direct more funds to areas of greater public need, such as underfunded local governments or schools.
- Corporations benefit from Michigan's public infrastructure and workforce, so a higher rate may better reflect that value.
✕ REASONS TO OPPOSE
- A higher corporate tax rate could make Michigan less competitive with neighboring states, potentially discouraging businesses from locating or expanding here.
- Companies facing higher taxes may pass costs on to consumers through higher prices or to workers through lower wages or fewer jobs.
- Changing how tax revenue is distributed could reduce funding to programs or localities that currently depend on the existing formula.
- Increased tax burdens on businesses could slow investment and economic growth in the state.
Read the full bill ↗
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