The Southwest Michigan Regional Chamber has come out against two proposals that could appear on the November ballot statewide.

Chamber President Arthur Havlicek tells us the Board of State Canvassers last week approved ballot language asking voters if they want to increase Michigan’s income tax to 9.5% for incomes exceeding $500,000 as a single filer, or $1 million for joint filers. However, he says this isn’t just about sticking it to the rich. Havlicek says many small and midsized businesses would be devastated.

“Essentially, most of those small businesses are going to be sole proprietorships, partnerships, S-corporations, and LLCs, and those incomes are typically taxed at that owner’s individual rate,” Havlicek said. “So what this would essentially do is more than double the income tax rate for those entities.”

Havlicek says those businesses would also be at a terrible competitive disadvantage with neighboring states.

The other ballot proposal would undo the state’s new minimum wage law, just approved by the Legislature to get around a state Supreme Court ruling that would have required tipped workers to be paid the full minimum wage. Havlicek says the fight over this has been dragging on for years, despite the Legislature settling it.

“The language as proposed is not something that would ever pass the Legislature or be signed by the governor. It’s just an unfortunate reality of how our system works.”

Restaurants, in particular, say they would be hurt if the minimum wage proposal passes.

Now that the Board of State Canvassers has approved the language for both proposals, supporters have 180 days to collect the signatures needed to get the questions on the ballot. Havlicek says the Southwest Michigan Regional Chamber, and other chambers around the state, will be campaigning against both.