Politics
Cook County ballot asks whether Illinois should tax income above $1 million
A nonbinding question on Cook County voters’ November ballots asks whether Illinois should impose a 3% income-tax surcharge on income over $1 million, splitting the revenue between property-tax relief and public schools. The proposal would require a state constitutional change and further voter approval before it could take effect.
Cook County voters will see a nonbinding question on their November ballots asking whether Illinois should impose a 3% income-tax surcharge on income above $1 million, with the money divided between property-tax relief and public education.
The ballot measure would not create a tax. It is an advisory question, and any surcharge would require state lawmakers to advance a constitutional amendment and Illinois voters statewide to approve it. An effort to move a joint resolution forward failed in Springfield earlier this year.
The proposed question asks whether Illinois should adopt the “Millionaire Amendment for Property Tax Relief and Education.” Under the plan, half of the revenue would fund property-tax relief for residential and commercial taxpayers, and the other half would increase state funding for public schools.
A similar question put to voters statewide two years ago received 61% support, according to the information accompanying the current referendum.
A report co-written in April by Robert Bruno, director of the Labor Education Program at the University of Illinois, and economist Frank Manzo estimated that about 41,000 people statewide would be affected. The report projected the surcharge could raise $3.8 billion in its first full year and $4.2 billion annually by 2030. It also estimated that the state could provide $1,500 rebates to 3 million homeowners and reduce property-tax bills by 20%.
Bruno said the plan could ease pressure on household budgets. He argued that the surcharge would ask a relatively small group of high-income residents to contribute more while supporting services and tax relief that could benefit millions.
Katherine Loughead, vice president of state tax policy at the Tax Foundation, warned that a higher tax could influence business decisions and affect people beyond those who owe the surcharge. She said businesses might relocate and that some costs could be passed on through higher consumer prices, fewer job opportunities, lower wages or reduced investment returns.
Bruno disputed concerns that the policy would prompt a lasting exodus of high earners, pointing to Massachusetts, where he said the number of taxpayers earning more than $1 million increased after that state adopted a surcharge.
The November question will gauge Cook County voters’ views, but a yes vote alone would not change Illinois tax law or deliver property-tax relief or additional school funding.