House Republicans stood united against Illinois Democrats’ latest income tax hike proposal that would have opened the door to even more tax increases on Illinois families and job creators.
Just recently, the IRS released new data showing Illinois lost a staggering $6 BILLION in income in one year from people moving to other states. Tax hikes without spending reform will never solve Illinois’ fiscal problems. Our residents need relief now.
IRS: Illinois lost $6 billion to outmigration in 2023
House Joint Resolution Constitutional Amendment 21 would amend the Illinois Constitution to impose an additional 3% income tax on income over $1 million. Democrats claim the revenue would be split, with 50% going to property tax relief and 50% to school funding.
Illinois families already face one of the highest tax burdens in the country. Instead of providing relief, Democrats are once again looking to raise taxes. This is the same failed formula: tax more, spend more, then come back and demand even more.
In 2020, Illinois voters rejected Governor Pritzker’s graduated income tax amendment. HJRCA 21 is another attempt to revive the same tax hike agenda voters already said no to. Democrats are ignoring the clear message taxpayers sent at the ballot box.
Once the Constitution is changed to allow a targeted income tax increase, it becomes easier to expand it in the future. Today it is income over $1 million. Tomorrow it could be far less. Illinois taxpayers have every reason to be skeptical of promises that this tax will stay limited.
The Democrats’ income tax surcharge would drive people, jobs, and investment out of Illinois, which is already losing residents to more affordable, tax-friendly states. According to a recent study by Realtor.com, $6 billion left Illinois in 2023.
When residents with higher incomes leave Illinois, it will be hardworking families who are left with the remaining tax burden. Raising taxes on job creators, entrepreneurs, and small business owners will only make that worse. According to Illinois Policy, 22,020 small businesses in Illinois would be punished under this proposal.
“Illinois lawmakers owe it to their constituents to address the crisis of soaring property taxes across the state,” said Rep. Coffey. “I recently had a constituent tell me their property taxes and insurance bill increased by $500 a month. This is unacceptable. Families deserve relief but instead they are faced with property tax increases that are through the roof, gas prices on the rise, and grocery bills that keep getting higher.”
If Democrats wanted to lower property taxes, they could do it now without raising taxes. Taxpayers should not be asked to hand over more money with no real guarantee of results. We should have property tax relief NOW.
House Republicans have introduced legislation to provide real property tax relief, yet Democrats refuse to call it. The answer is not to raise one tax while promising relief somewhere else. The answer is to cut taxes, control spending, and make Illinois more affordable.
Millionaire tax amendment fails to gain enough support from House Democrats