Illinois House Republicans opposed a new income tax proposal from Democrats that would have raised taxes on families and businesses, according to an April 30 statement. The measure, known as House Joint Resolution Constitutional Amendment 21, sought to amend the Illinois Constitution by adding a 3% income tax surcharge on earnings over $1 million. Supporters said the revenue would be split equally between property tax relief and school funding.
The issue is important because many Illinois residents are concerned about high taxes and people leaving the state for more affordable places. Recent data shows that Illinois lost $6 billion in income in one year due to people moving away, raising concerns about the impact of continued tax increases without spending reform.
Republicans argued that instead of helping families, the proposed amendment would have increased their financial burden. “The typical Illinois homeowner now pays roughly $5,055 in property taxes, more than double the national average,” said Representative Kevin Schmidt. “These high tax rates place an unfair burden on Illinois families who are already contending with the rising costs of essentials. We need to do more to provide relief for our residents so they can thrive here in Illinois.” Schmidt also said lawmakers should focus on real property tax relief rather than increasing other taxes.
According to a recent study by Realtor.com, $6 billion left Illinois in 2023 as people moved out seeking lower taxes and cost of living. Small business owners could also be affected; according to Illinois Policy, over 22,000 small businesses would face higher taxes under this plan.
Schmidt was elected as a Republican representative for the state’s 114th House District in 2023 after replacing LaToya Greenwood according to Ballotpedia.
House Republicans say they have introduced legislation aimed at reducing property taxes but claim Democratic leaders have not allowed these bills forward for consideration.
