The proposed ‘millionaires tax’ in Illinois, which would have added a 3% income tax on residents earning more than $1 million annually, has stalled after House Speaker Emanuel “Chris” Welch decided not to bring the measure to a vote last week, according to an April 29 statement. With the Illinois constitution mandating a flat income tax rate of 4.95%, any move to increase taxes on higher earners would require voter approval of a constitutional amendment.
This development is significant because supporters argue that taxing the wealthiest residents could provide much-needed funding for local social services and public education. However, the legislative session’s timeline has made it unlikely that the amendment will appear on this November’s ballot.
Welch said taxing wealthy individuals remains a priority for him and other progressives but acknowledged that “the proposal doesn’t have the numbers to meet the required supermajority vote.” At least 60% of legislators needed to approve the amendment by May 3 for it to be included in this year’s general election, but House members are not scheduled to reconvene until after that deadline.
A recent study from researchers at the Illinois Economic Policy Institute and University of Illinois found that such a policy could generate $3.8 billion in its first year and up to $4.2 billion by 2030. The study indicated only about 41,000 taxpayers—roughly 0.6% of those filing returns in Illinois—would be affected by this change. It also noted that similar taxes have allowed other states to invest more heavily in public education and infrastructure.
The report outlined several possible uses for new revenue generated by such a tax: providing property tax relief, fully funding public schools through evidence-based methods, or freezing school property taxes while increasing state support for education.
The next opportunity for lawmakers to advance constitutional amendments will not come until May 2028, suggesting any renewed effort on this issue may take several years.
