Michigan’s government has been woefully underfunded in the past two decades. A study released by Michigan State University this year found that we need $3.6 billion in additional revenue to adequately fund our school system.
This column originally appeared in Michigan Advance on November 21, 2019
At the Michigan League for Public Policy, we are committed to working on public policies that help Michiganders put food on the table, gain access to quality health care and have affordable housing.
In order to fund these policies, we need a robust tax system that produces needed revenue to make these investments while ensuring that folks with low incomes are not taxed disproportionately.
Michigan’s tax system is upside-down, meaning that people with lower incomes pay a greater percentage of their income in taxes than those with higher incomes. Flipping our tax system from a flat tax to a graduated income tax would fundamentally switch this dynamic — the rich would pay a higher proportion of their income in taxes, while giving relief to those at the bottom and middle of the income spectrum.
I realize that my passion for taxation is not shared by everyone, so it is very possible that you’re not leaping out of your seat and rushing to learn more. Please bear with me, though; I think that you’ll find my arguments for adopting a graduated income tax compelling, if not invigorating.
The League has just released this policy brief talking about the benefits of a graduated income tax for Michigan and its residents.
A graduated income tax is more equitable with regard to race.
Policies and practices such as employment discrimination, limited access to credit and multigenerational barriers to quality education have advanced structural and institutionalized racism since the founding of this country.
Because of the legacy of racist policies and practices, there is an intersection between race, income and wealth. People of color are more likely to earn less and are much less wealthy on average than their White counterparts. Because of this, a graduated income tax is a useful tool in decreasing the racial disparities in wealth and income.
A graduated income tax would provide revenue for vital services.
In addition to schools, our infrastructure needs are growing and our counties, cities, villages and townships are being short-changed by the Legislature. The need for additional revenue is clear.
Graduated income tax structures are fair.
Michigan is one of nine states with a flat income tax — every working person in Michigan pays 4.25 percent of their income in taxes, regardless of their economic circumstances. This leads to an unfair tax code. In Michigan, the lowest 20% of earners pay 10.4% of their income in state and local taxes, while the top 1% only pays 6.2% of their income in these taxes.
When combined with other state taxes, such as the sales and gas tax, individuals at the bottom end of the income scale end up paying a higher percentage of their income on state and local taxes than those at the top.
A graduated income tax would inject money into local economies.
Households at the top of the income spectrum are often able to save more of the money they make, while working families with lower incomes are putting most of their paychecks toward everyday needs.
In other words, earners who make less money tend to spend more of each dollar they earn at local businesses. As such, reducing taxes for working families with low and middle incomes, while raising taxes on the rich, will increase economic activity. This economic activity will allow businesses to hire more employees and will spur entrepreneurship.
How do we get there?
The Michigan Constitution prohibits the adoption of a graduated income tax. To adopt a fairer and more racially equitable tax system, the constitution must be amended by the Michigan Legislature or by a vote of the people.
Legislation to implement a graduated income tax has already been introduced this session and an overwhelming 70% of Michiganders support this structure, while only 20% say they would reject such a proposal.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
