Millionaire tax push resumes in Chicago
(The Center Square) – Former Illinois Gov. Pat Quinn and state Rep. LaShawn Ford, D-Chicago, have taken the next step in their campaign to raise taxes on people who earn more than $1 million, and the speaker of the Illinois House is on board.
Quinn and Ford filed ordinances on Thursday for a non-binding referendum to be placed on Chicago ballots in the general election this November or in the citywide election next February.
Statehouse members did not vote on Ford’s proposed constitutional amendment in time for a binding measure to appear on the November ballot statewide.
HJRCA 21 would impose a 3% tax on net income more than $1 million, with 50% of revenues to be used for property tax relief and 50% for public school districts.
A reporter from The Center Square asked Quinn why Illinois does not provide more immediate property tax relief by placing a cap on property tax increases like Indiana does.
Quinn said he supported a cap on levies in 1991 or 1992.
“That has not worked well in Illinois. There are too many exceptions. Now, I think we ought to take a look at those exceptions,” Quinn said.
The former governor said the millionaire amendment would be better because it would provide rebates for taxpayers.
On Wednesday, Illinois House Speaker Emanuel “Chris” Welch told The Center Square reporter Sean Reed he fought for Ford’s constitutional amendment proposal this year.
“I certainly would ask people to join me in the fight to tax the rich, to pass the surcharge tax on millionaires,” Welch said.
Welch said lawmakers should consider the tax if a special session is called for any reason.
Quinn listed other states that have passed legislation to enact taxes on millionaires, including Hawaii, Massachusetts and Washington.
The former governor said Massachusetts has more millionaires now than it did when the tax was approved.
Washington state officials approved a 9.9% tax on household income above $1 million in March.
A survey conducted in late April by the Association of Washington Business found about 24% of employers considering moving their business out of the state, and even more considering moving their personal residence out of Washington.
The Center Square recently reported that Starbucks plans to relocate more than 300 from Seattle to Nashville, according to regulatory filings and interviews with officials in both cities.
When asked by The Center Square if Illinois school districts might simply waste the extra money, Quinn said the amendment allows the legislature to place guardrails in school district budgets.
“We want to make sure that the money the school districts get is used to abate and reduce property tax levies, and the legislature under this amendment would have that power,” Quinn said.
After Chicago Mayor Brandon Johnson provided his city’s public schools with a $1 billion tax-increment financing sweep last December, the board of education raised its property tax levy by the maximum amount allowed just days later.
CPS has since proposed a $10 billion budget for next school year, with a projected deficit of $732.5 million.
Sean Reed, Randy Diamond and Carleen Johnson contributed to this story
Partly Sunny
Latest News Stories
Illinois Quick Hits: Storms cause damage, closures
Extension of pension buyout program to drop $144B liability
Schools face bus funding, cost challenges
‘Family Month’ backer cites biology, declining birth rates in defense of resolution
Aldermen say lawmakers failed to address illegal cannabis sales near schools
Illinois Quick Hits: Oak Park woman charged with child care fraud
Florida attorney general appeals Chicago judge’s ‘lawless’ transgender ruling
Congressman calls out Chicago schools’ academic woes
Everyday Economics: A stable labor market is not enough
Fishermen advocate begins campaign against offshore wind, ‘industrializing’ of the ocean
Sorensen drug-pricing bill draws criticism from former FDA official
Supporters, critics clash over future of taxpayer funding for Rx Kids
