Higher Taxes Won’t Fix Michigan’s Schools 

Michigan pours a hefty $15,000 of taxpayer money each year into educating every one of its students, placing it among the states with the highest per-pupil spending in the nation. And surely, top spending guarantees top results… right? 

Wrong. As Governor Gretchen Whitmer admits, Michigan’s education outcomes remain alarmingly poor. Just 24% of fourth graders read proficiently, and only 24% of eighth graders are proficient in math, ranking Michigan in the bottom ten nationwide. 

And while many wonder how Michigan manages to achieve so little with such high spending, a new coalition is now pushing for a massive tax hike as the answer to the state’s educational crisis. The “Invest in Mi Kids” proposal calls for an amendment to Michigan’s constitution that would impose an additional 5% tax on annual taxable income over $1,000,000 for joint filers and over $500,000 for single filers. The amendment would also mandate that all revenue from this tax be used exclusively to support education. 

How pouring even more astronomical sums into education will lift Michigan from the cellar—when so much spending has already produced disappointing results—is anyone’s guess. But there’s no guessing about the negative impact that a higher income tax would have on Michigan’s taxpayers. 

The “Invest in Mi Kids” proposal would affect approximately 18,300 households, forcing them to contribute more toward public schools, according to IRS data. It would also push Michigan’s income tax rate to the fourth highest in the nation, only behind California, New York and Oregon. 

And while the tax may appear targeted at wealthy individuals, the truth is that all Michiganders would ultimately bear its cost. More than 90% of businesses in the United States operate as pass-through entities, meaning their business income flows directly to the owner’s personal tax return and is taxed at individual income tax rates rather than corporate rates. Raising Michigan’s top individual income tax rate from 4.25% (flat) to 9.25% would hit countless small businesses that file under the individual tax code, siphoning away funds that would otherwise be used to reinvest, expand, and create jobs. Higher taxes would leave businesses with fewer resources to grow, ultimately slowing job creation and economic opportunities. Workers would feel the pinch through lower wages, while consumers would end up paying higher prices for goods and services. 

Americans for Tax Reform (ATR) has extensively commented on the vices of the income tax for Michigan, which would only be exacerbated if the “Invest in Mi Kids” proposal manages to collect the 446,000 valid signatures required to place its plan on the November 2026 general election ballot. 

In fact, Michigan’s income tax rate is already higher than those of neighboring states like Ohio and Indiana, putting it at a competitive disadvantage. Income taxes play a significant role in where people choose to live and work. Keeping Michigan’s rate above that of its regional competitors is already harming the state in precisely the area it can least afford — population retention and growth. An additional tax hike would only worsen Michigan’s serious population problem. 

And yet, despite the well-documented negative consequences of higher taxation and experts urging lawmakers to pursue policies that promote educational innovation, school accountability, and expand learning options for families, proposals like that of “Invest in Mi Kids” disregard economic incentives. Instead, they insist that pouring even more taxpayer money into an already well-funded but malfunctioning system will solve Michigan’s educational challenges. 

Meanwhile, down south, Louisiana offers a powerful example of what’s possible when states focus on practical reforms rather than simply spending more taxpayer dollars. Instead of resorting to tax hikes to fix its education system, Louisiana has implemented a series of common-sense measures aimed at improving student outcomes. In June, the state revised its accountability system to provide a simple, transparent, and rigorous evaluation of student achievement using a 100-point grading scale. Its new “Grow, Achieve and Thrive” framework grades the performance of public schools and school systems, while initiatives like “Let Teachers Teach,” banning cell phones during school hours, and streamlining the removal of disruptive students help restore order and focus in classrooms.  

Louisiana’s leaders have also made a concerted effort to get back to the basics in reading and math, emphasizing phonics-based instruction and memorization techniques rather than relying on educational fads. And unlike Michigan, these reforms are delivering real results. This year, Louisiana students achieved their highest-ever rankings, moving from 49th in the nation in 2019 to 32nd overall on The Nation’s Report Card.  

Michigan should take note: real progress comes from bold reforms, not from squeezing taxpayers for bigger budgets. No new tax can fix a system unwilling to change. It’s time for leaders in Lansing to follow the lead of places like Louisiana and deliver real solutions that put students first and make Michigan stronger for generations to come.