Illinois Tax Relief: A Non-Binding Referendum to Test the Waters
The Proposal
A non-binding referendum is stirring up controversy in Illinois, aiming to ease the burden of high property taxes on residents. The proposal, backed by former Governor Pat Quinn, asks voters whether the state should increase taxes on incomes over $1 million to fund property tax relief. The idea is to raise the income tax rate from 4.95% to 7.95% for millionaires, generating an estimated $4.5 billion annually. This revenue would be used to provide annual rebates to property owners, alleviating the high property taxes many face.
The Campaign
Quinn, a Democrat, is urging voters to support the proposal, believing it will generate enough public support to pressure lawmakers into action. He hopes the non-binding referendum will lay the groundwork for a future constitutional amendment allowing Illinois to have multiple income tax rates. This would enable the state to implement a more progressive tax system, reducing the burden on low- and middle-income households.
The Argument
Quinn argues that the current system is unfair, with many high-income individuals enjoying significant tax breaks while placing a heavy burden on the average taxpayer. "There are a lot of tax breaks for millionaires and high property tax bills for everyday people. Taxes should be based on ability to pay," he said.
The Opponents
Critics, however, are concerned that the proposal could lead to wealthy individuals leaving the state. A study by WalletHub ranked Illinois as having the second-highest property taxes in the country, behind only New Jersey. Opponents worry that this change could push more individuals out of the state, further exacerbating the issue of high property taxes.
The Numbers
- 77,000 millionaires in Illinois
- Over 3 million households currently pay property taxes
- Potential revenue generated: $4.5 billion annually
- Proposed income tax rate: 7.95% for millionaires
- Current income tax rate: 4.95% for millionaires
Frequently Asked Questions
Q: What is the purpose of the non-binding referendum?
A: The referendum aims to gauge public support for increasing taxes on incomes over $1 million to fund property tax relief.
Q: How would the increased revenue be used?
A: The revenue generated from the increased tax rate would be used to provide annual rebates to property owners, alleviating the burden of high property taxes.
Q: What is the ultimate goal of this proposal?
A: The ultimate goal is to lay the groundwork for a future constitutional amendment allowing Illinois to have multiple income tax rates, enabling a more progressive tax system.
Q: What are the concerns surrounding this proposal?
A: Opponents worry that the proposal could lead to wealthy individuals leaving the state, exacerbating the issue of high property taxes.
Q: How many households in Illinois currently pay property taxes?
A: Over 3 million households in Illinois currently pay property taxes.
