Illinois 'millionaires tax' proposal seeks to fund education, provide tax relief with 3% surcharge
Voters could decide on new tax in November if state lawmakers pass proposal by May 3
SPRINGFIELD, Ill. (WLS) -- There is a push to tax the wealthy in Illinois to fund education and provide tax relief for property owners.
The sponsor of the so-called "millionaires tax" says he's trying to shore up enough votes to make the tax a reality.
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If the "millionaires tax" proposal makes it through Springfield, it will be up to Illinois voters to approve a 3% surcharge on anyone earning $1 million or more annually.
For anyone who earns enough money to comfortably shop at designer stores, drive a fancy car or live in a multimillion dollar home, some Democratic Illinois lawmakers and say it's time for them to pay more.
Illinois State Representative LaShawn Ford is behind a binding referendum asking voters to approve a tax increase on $1 million incomes.
"Illinois has almost 13 million people, but the millionaires tax only impacts 32,000," Rep. Ford said.
Ford says the 3% tax increase on million dollar incomes or more is predicted to generate $4.5 billion. The money will be split between education and property tax relief for Illinois residents.
"If the voters approve it, we can also make sure that we use the funds for higher education," Ford said. "We can use the funds for early childhood education. We can use the funds for other educational opportunities."
SEE ALSO | Illinois House speaker pushing for new millionaire tax with looming $2.2B budget deficit
Those who are against it say while voters may agree higher income earners should pay more, they don't trust Illinois lawmakers to use the money generated from the tax responsibly.
"Illinoisans don't like passing something to find what's in it," said Austin Berg, Chicago Policy Center executive director. "We saw a progressive income tax on the ballot in 2021. Of the major reasons it lost is because Illinois did not trust these political promises."
The Chicago Policy Center is an arm of the conservative Illinois Policy Institute. Berg says the surcharge also affects thousands of small business owners.
"These are not people in pinstripe suits and Rolexes driving limousines," Berg said. "These are people with their names on the side of their truck who are making over a million dollars in pass-through income."
Ford says if approved by voters, lawmakers can make exemptions for businesses when working out the details.
In addition, Berg claims the 3% surcharge will drive more residents out of state. He says Illinois has lost over a million taxpayers during the past decade, taking $88 billion with them.
"Illinois is a great place to be, and I don't think that people leave Illinois because of a 3% surcharge," Ford said.
The "millionaires tax" proposal must pass the Illinois House and Senate by May 3 to make the November ballot. If voters approve, it will be then go back state lawmakers to implement the bill.
