The Illinois Policy Institute announced that Illinois politicians are pursuing changes to the state constitution that would remove the flat income tax protection, more than five years after Governor J.B. Pritzker’s proposed progressive tax failed.
According to a post by the Illinois Policy Institute on X, the proposed constitutional changes would allow for progressive income taxes, ostensibly targeting wealthier individuals. However, the institute argues that historically, such systems have facilitated broader taxation. The post also highlights that eight other states have transitioned from progressive to flat tax systems and references concerns about potential negative economic impacts cited by the drafters of the 1970 Illinois Constitution.
Illinois homeowners currently face an average effective property tax rate of 1.83 percent on median-priced homes, which is reportedly the highest in the nation. This contributes to financial pressures in Chicago and its suburbs, where funding for union pensions and social programs increases taxpayer costs. In 2024, Illinois experienced a net loss of 82,900 residents, with 95 percent relocating to lower-tax states such as Florida and Indiana. The Census Bureau ranks Illinois 48th in terms of resident retention due to these economic factors.
Between 2021 and 2025, eight states including Arizona, Iowa, and Georgia shifted from progressive to flat income tax structures with reduced rates for economic efficiency. According to the Tax Foundation, these reforms align with pro-growth strategies by avoiding targeted tax increases that could deter investment.
The Illinois Policy Institute describes itself as a nonpartisan research organization dedicated to educating residents and promoting free enterprise solutions for prosperity within the state. It focuses on issues like budget and tax policy, education reform, government accountability, labor markets, and job growth while opposing high taxes and inefficient spending.
