Op-Ed: As Another Tax Season Draws to a Close, Housing Advocates Want a Fair Tax System
April 15, 2025 |
Julie Houck

April is here, and with it goes the end of the tax season. This tax day, from Detroit to Grand Rapids, from Marquette to Monroe, most of us paid our share to help fund our public services.

But, not everyone. According to the Institute on Taxation and Economic Policy, the ultra-wealthy in Michigan pay less dollar for dollar than our teachers and janitors.

Michigan’s ultra-wealthy likely paid the same as they did last year—about 5.7% of their income in state taxes. Meanwhile, middle-class families paid around 9.7%. In Grand Rapids, we know the power of public investment. Every tax dollar we collect has the potential to fund what our community truly needs— good schools, clean water, and among other things, safe, stable, and affordable housing. From increasing the supply of housing to helping first-time homeowners get down payment assistance and even letting families use HUD vouchers to pay for mortgage payments, public dollars can make the difference between a middle-class family falling through the cracks or being able to live the life we want to live. 

But our system isn’t working for everyone. In the past few years, average home prices have gone up nearly 100%. And estimates from the most recent housing needs assessment show we need thousands more rental units just to keep up with demand in the next couple of years. While working families feel the squeeze every day, Michigan’s ultra-rich are slipping through loopholes and dodging what they owe. It’s not just unfair—they are stealing from our community. When the wealthy don’t pay their taxes, it defunds our public services. The hollowing out of our government with generations of bad policies have created a housing nightmare for many families. Properly funding our services such as those of the GR Housing Commission and ensuring affordable housing can be our ticket out. To this end, Grand Rapids for Affordable Housing has been a member of Fund MI Future, a group seeking to make the wealthy pay what they owe in income taxes–like the rest of us.

Twenty-seven other states currently charge ultra-wealthy households–those making more than a million dollars a year–a marginally higher income tax rate (a progressive tax) so that their communities have the basic things they need. In Massachusetts, for example, ​​voters approved a 4% surcharge on incomes over $1 million in a statewide ballot referendum, raising over a billion dollars for education. We could do that here in Michigan, instead of our teachers paying the same income tax rate as millionaires, and a lower share overall when we factor in other taxes (e.g. sales tax).

It’s time to make the rich pay their share. No more excuses.

Julie Houck is the Chair of GR Affordable Housing

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