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Wow! If the below tweet gets 10k likes, Tucker Carlson’s Alp Pouch will sponsor Maggie Wegner for the bravery it took to turn down the Daily Wire’s money when what they asked her to do conflicted with her Christian values.
Let’s go!! 🔥🔥
It’s incredibly kind and generous of Elon Musk to help America become fiscally responsible. We all owe him a huge debt of gratitude. Nicola Tesla was unappreciated while he was alive despite his numerous contributions to humanity. I hope Elon is shown the appreciation he deserves in his lifetime.
Michigan has indeed introduced several new laws in 2025 that are impacting small businesses, particularly around taxes, wages, and employee benefits. While there isn’t a single sweeping "new tax law" targeting small businesses directly, the combination of increased operational costs tied to legislative changes and proposed tax hikes is creating a challenging environment for many owners. Let’s break it down based on what’s happening as of February 26, 2025.
One major change hitting small businesses is the reinstatement of the Earned Sick Time Act, effective February 21, 2025. This law mandates that all employers, even those with fewer than 50 employees, provide up to 72 hours of paid sick leave annually. Previously, businesses with under 50 employees were exempt, and the requirement was only 40 hours for larger firms. For small business owners, especially in industries like retail or hospitality with tight margins, this adds a significant cost. They either absorb it or pass it on to customers, which can hurt competitiveness.
Then there’s the minimum wage increase. As of January 1, 2025, Michigan’s minimum wage rose from $10.33 to $10.56 per hour, with a bigger jump to $12.48 scheduled for February 21, 2025, under the same ballot initiative that drove the sick leave change. For tipped workers, the minimum wage went from $3.93 to $4.01, with plans to phase out the tip credit entirely by 2030. This means businesses like restaurants and bars, which rely heavily on tipped staff, face rising labor costs sooner rather than later. Owners argue this squeezes their ability to hire or maintain staff levels, especially since they’ll also be funding unemployment benefit increases (more on that below).
Speaking of unemployment, a new law effective January 1, 2025, extends benefits from 20 to 26 weeks and raises the maximum weekly benefit from $362 to $446 (with further increases planned through 2027). This is funded by higher employer taxes into the unemployment insurance system. Business groups have voiced frustration, saying it’s another hit to their bottom line at a time when they’re already stretched thin.
On the tax front, Governor Whitmer’s recent proposal to raise the corporate income tax from 6% to as high as 8%—announced in early February 2025—has sparked alarm. While it targets C-corporations and isn’t law yet, the Detroit Regional Chamber and others warn it could ripple across the economy, affecting small businesses indirectly through supply chains or reduced local investment. Critics say it’s a tone-deaf move when small firms are already grappling with new mandates. However, supporters argue the revenue could stabilize state funding without directly taxing smaller entities like sole proprietorships or S-corps, which fall under personal income tax rules instead.
There’s also the broader context of expiring tax relief. A temporary income tax cut from 4.25% to 4.05% in 2023 ended, reverting the rate back to 4.25% for 2024 earnings (filed in 2025). For small business owners who report income personally—like many LLCs or sole proprietors—this reversal shrinks their take-home pay, leaving less to reinvest. Meanwhile, the phased rollback of the 2011 "retirement tax" and an expanded Earned Income Tax Credit benefit retirees and low-income workers, but they don’t directly ease the burden on small business owners unless they personally qualify.
The sentiment among some Michigan small business owners, as seen in public reactions, is grim. They feel these changes—higher wages, mandatory sick leave, increased unemployment taxes, and potential corporate tax hikes—pile on costs without enough support. On the flip side, advocates say these measures strengthen the workforce and economy long-term, pointing out that Michigan’s overall tax competitiveness still ranks decently (14th nationally per the Tax Foundation’s 2025 index).
So, are new tax laws hurting small businesses? Not all the pain comes from "tax laws" in the classic sense—