In Blog: Factually Speaking, Education, Invest in MI Kids, Tax and Budget

The Invest in MI Kids ballot proposal would add a 5% tax surcharge on our state’s wealthiest, raising more than $1 billion annually for much-needed public school funding. Setting kids up to succeed, supporting schools and narrowing Michigan’s tax gap? That’s definitely an A+. 

The Invest in MI Kids ballot proposal is currently gathering signatures to get on the November ballot. We have five fast facts to clear up any misconceptions and spell out why Invest in MI Kids is at the top of its class here at the League:

1. Invest in MI Kids will only affect less than 1% of the top earners in Michigan.

The proposal would add a 5% tax surcharge on the wealthiest Michiganders, including joint filers making over $1 million a year and single filers making over $500,000 a year. Most filers, including many owners of profitable businesses, won’t be subject to the surcharge. More than 99% of Michiganders won’t pay a penny more. 

2. Invest in MI Kids is not a small business tax.

While a small number of the wealthiest business owners in Michigan will have to pay the surcharge based on their high incomes, the average small business owner will not. Only Michiganders making over $1 million a year as joint filers or $500,000 a year as a single filer will pay the surcharge.

3. Revenue raised by Invest in MI Kids will significantly boost K-12 education in Michigan following decades of state disinvestment.

  • In the national 2025 KIDS COUNT® Data Book, Michigan ranked 44th in the nation for education.
  • Our latest Kids Count data shows that only 1 in 4 Michigan students is proficient in reading in fourth grade and in math in eighth grade, and more than 70% of Michigan students in 11th grade are not college-ready. 
  • Based on recent research, more than three-quarters of Michigan students attend an under-resourced school district, and Michigan needs to invest an additional $4.5 billion in order to achieve adequate funding that meets the needs of all students. Unfortunately, this disinvestment has resulted in opportunity gaps. And due to a history of discriminatory practices, like redlining and segregation, children of color and students learning English often have worse outcomes.

We’ve done our homework. Time and time again, research has shown that increased, sustained and equitable investment in public education leads to better student outcomes such as higher test scores, improved graduation rates, increased college attendance, and even long-term economic benefits like higher earnings.

Revenue raised by Invest in MI Kids would be deposited into Michigan’s School Aid Fund and used exclusively on local school district classrooms, career and technical education, reducing class sizes, and recruiting and retaining teachers. All of this is very much needed to boost our state’s educational outcome and provide the best for the youngest in our state. 

4. The Invest in MI Kids tax surcharge will help to narrow a long-standing, unfair tax gap.

Invest in MI Kids will help make our tax system more fair by raising the overall effective state and local tax rate for the top 1%, who currently pay the lowest share. According to an analysis from the Institute on Taxation and Economic Policy (ITEP), the top 1% of earners in Michigan — those making over $670,300 a year — only pay 5.7% of their income to state and local taxes, which is less than any other income bracket in the state. Families that fall into the category of middle-income earners are paying the highest share of their income to taxes at an average of 9.7% and the lowest 20% of income earners in Michigan pay an average of 7.1%. The Invest in MI Kids tax surcharge would help make sure the wealthiest Michiganders are paying their fair share. 

5. If you signed the petition prior to Oct. 1, 2025, you need to sign again.

Invest in MI Kids began a new 180-day signing window in October, and signatures captured before that are no longer valid. Email info@investinmikids.org to find a place to sign again near you.

Want some extra credit?

Here’s where you can find more information on Invest in MI Kids: 

Find a signing location

Learn more at Invest in MI Kids

Invest in MI Kids comic explainer from the League

Blog from League Fiscal Policy and Government Relations Director Rachel Richards

Blog from League President & CEO Monique Stanton