Editorial cartoonist Scott Stantis for Sun, Oct 27, 2024 on millionaire tax referendum. | Scott Stantis/For the Chicago Tribune (Click on image to enlarge)
By THE EDITORIAL BOARD | Chicago Tribune
“Should the Illinois Constitution be amended to create an additional 3% tax on income greater than $1,000,000 for the purpose of dedicating funds raised to property tax relief?”
This statewide ballot question, dubbed by its supporters as the Illinois Property Tax Relief Amendment Referendum, has been pushed by former Illinois Gov. Pat Quinn. Other prominent and predictable supporters of this nonbinding referendum include U.S. Reps. Jesús “Chuy” García and Danny Davis.
These Democrats are linking the property tax crisis among the middle class in Illinois (specifically, the huge hikes in bills seen in the recently reassessed South and West suburbs in Cook County) with tax rates for high-income Illinoisans. By saying they are earmarking the potential revenue for property tax relief, they are disguising what otherwise is a simple state tax increase on high earners.
How much this endeavor would swell Illinois coffers is disputed, but WBEZ reported Thursday that the state’s revenue department has estimated it would raise $4.5 billion.
By way of background, note that the Illinois Constitution states that the state shall have a flat tax: specifically, “a tax on or measured by income shall be at a non-graduated rate.” Most likely, the passage of this question would lead to another ballot initiative for a constitutional amendment.
Note also that voters rejected a 2020 effort by Gov. JB Pritzker to establish a graduated state income tax that would have reduced the current 4.99% flat rate on single and joint filers making under $100,000 and variously increased it on those above that level; the Chicago Teachers Union, looking for money for its members, wants the governor to try again. Naturally.
We say the voters already spoke. We encouraged a ‘no’ vote on that 2020 effort saying, in part, that “the beauty of today’s flat rate is that raising it on everyone at once is much harder politically than gouging one cohort at a time. This amendment would strip taxpayers of their leverage against ever-more hikes.”
Clearly, voters agreed and that argument still holds.
Read more here.
Related: “‘Millionaire’ Tax would be $2-$3.3 billion short of providing any property tax relief,” “Legislator says ‘millionaire tax’ will make Illinois a ‘business desert’ (McLaughlin),” “Should Illinois millionaires fund property tax relief?”
