Former Illinois Governor Pat Quinn is once again advocating for a 3% tax surcharge on incomes over $1 million to reduce property taxes and increase education funding. This idea was first proposed in 2014, when voters supported an advisory referendum, but state lawmakers failed to act.
In 2024, Illinois voters again approved a similar nonbinding referendum with over 60% support. Supporters, including Quinn, hope this renewed backing will push the General Assembly to move forward with a constitutional amendment.
The proposed millionaire tax faces significant hurdles. To become law, lawmakers must turn the referendum into a binding amendment to the Illinois Constitution, which currently requires a flat income tax rate. Achieving this requires a three-fifths majority vote in both legislative chambers, a difficult task given the lack of consensus among Democrats and Republican opposition.
Rep. Jay Hoffman, who helped reintroduce the referendum in 2024, says the focus this time is on using the revenue for property tax relief, a major concern for Illinois residents. However, opposition groups argue there is no guarantee that all the funds would go toward property tax relief, especially with the state’s projected $3 billion budget shortfall in 2026.
Critics, including the Illinois Policy Institute and the Illinois Chamber of Commerce, warn the surcharge could drive wealthy residents out of Illinois, potentially raising property taxes for everyone else. They also point to the failed 2020 campaign for a graduated income tax, which was rejected by voters despite significant financial backing and campaigning.
Supporters, including Quinn, believe the consistent voter approval for the millionaire’s tax reflects public demand for fairer tax policies. They argue that strong grassroots organizing could overcome opposition from well-funded groups.
Next steps include drafting a constitutional amendment with clear language to prevent misrepresentation and ensure public understanding. If approved by lawmakers, the amendment could appear on the 2026 ballot.
The debate continues as Illinois lawmakers and voters grapple with balancing tax fairness, property tax relief, and economic competitiveness. While the path forward remains uncertain, the fight over taxing millionaires is far from over.
