Should Illinois raise $1 billion a year for public schools by raising the income tax on anyone making $1 million a year or more?
House Speaker Mike Madigan is pushing a constitutional amendment for the Nov. 4 ballot that would raise the income tax on million-dollar earners an additional 3 percent over the current 5 percent tax rate.
Key points to know include:
- 13,675 millionaires live in Illinois (are you one of them?)
- all income up to $1 million would be taxed at 5 percent
- everything over $1 million would be taxed an additional 3 percent
- $550 more per year would be raised for each public school student
- the proceeds would be divided by student instead of by district
- three-fifths of the Illinois House and Senate must approve the amendment by May to get it on the November ballot
“We’ve done this because we feel that the millionaires in Illinois are the ones that are better equipped to support education than others," Madigan said.
The four-year "temporary" income tax increase is due to expire at the end of 2014. If it lapses, the income tax rate would drop back to 3.75 percent — and the state would lose $4 billion a year in tax revenue. Madigan's proposal assumes the "temporary" hike remains.
Senate Republican Leader Christine Radogno of Lemont said: “Illinois Democrats’ answer to everything continues to be taking more money out of taxpayers’ pockets.”
- Tribune: Madigan proposes voters raise taxes on wealthy
- Breitbart: Illinois to follow California with referendum
- Reboot Illinois: Millionaire tax rate in line with other states
- CapitolFax: Reaction to Madigan's tax increase