Chicago City Wire

Early voting has commenced in Illinois for the upcoming general election on November 5. A key item on the ballot is a non-binding advisory question that asks residents whether the state should implement a "millionaire" tax aimed at providing property tax relief.

The group Illinois Policy has initiated a campaign, Vote No on Illinois Tax Hikes, to inform voters about the potential implications of this referendum. One concern highlighted by the group is that such a measure could pave the way for reintroducing a retirement tax.

For a millionaire's tax to be enacted, both lawmakers and voters in Illinois would need to approve an amendment to allow progressive income taxation under the state constitution. This change would enable different rates of taxation based on income levels and could extend to various forms of income, including retirement funds.

Research by Illinois Policy indicates that all 32 states with progressive taxes also impose taxes on retirement income. Bryce Hill, director of fiscal analysis at Illinois Policy, expressed concerns: “There’s no denying having a progressive tax would empower state lawmakers to go after seniors’ retirement income because the tax could be easier to impose initially,” he stated. Hill warned that such a move could represent one of the most harmful tax increases possible for Illinois. He emphasized that "Illinois’ constitutional flat income tax is a critical protection for seniors."

Further information regarding Illinois' ballot advisory questions can be found at illin.is/millionairetax.