Illinois lawmakers are debating a proposal to introduce an additional 3% income tax on individuals earning more than $1 million annually, with the aim of placing the measure on the November ballot, according to an April 22 report. The proposed “millionaires tax” is being supported by Illinois House Speaker Chris Welch, but legislators remain divided over how any new revenue should be allocated.
The discussion comes as policymakers seek ways to generate funding for public services and address affordability concerns across Chicago and Illinois. Supporters argue that a wealth tax could provide significant resources for property tax relief or public education.
State Representative La Shawn Ford has suggested directing all proceeds from the new tax toward property tax relief, offering rebates of $1,500 per property owner. Another plan from State Representative Natalie Manley would split funds between schools and property owners. A recent study by researchers at the Illinois Economic Policy Institute and University of Illinois estimates that such a policy could raise $3.8 billion in its first year and affect about 41,000 taxpayers—approximately 0.6% of those who pay taxes in Illinois.
Previous efforts to increase taxes on high earners have faced challenges in Illinois. In 2020, voters rejected a graduated income tax amendment backed by Governor JB Pritzker after a costly campaign involving both Pritzker and billionaire Ken Griffin. More recently, Mayor Brandon Johnson’s proposal for a corporate head tax was excluded from Chicago’s final budget.
Other states have pursued similar policies with mixed results. Massachusetts enacted a comparable measure in 2022 without seeing an exodus of wealthy residents; research suggests that most people leaving Illinois are younger with lower incomes rather than high earners.
For the current proposal to advance, state lawmakers must approve a constitutional amendment by May 3 so it can appear on the Nov. 3 general election ballot. If placed before voters, it would require either support from at least 60% voting on the question or a simple majority of all voters casting ballots.
