Illinois millionaire’s tax would direct 50% of revenue to public schools
[January 27, 2026]
By Jim Talamonti | The Center Square
(The Center Square) – A proposal for a state constitutional amendment to
impose a millionaire’s tax has been referred to the Illinois House Rules
Committee, but only half the revenues generated by the measure would be
directed to property tax relief.
House Joint Resolution Constitutional Amendment 21 was referred to the
committee earlier after being filed by state Rep. Natalie Manley,
D-Joliet, last October.
The measure would impose a 3% tax on any individual's net income that is
greater than $1 million for the taxable year.
Former Gov. Pat Quinn promised last November that a millionaire’s tax
would bring property tax relief for families and businesses, but House
Joint Resolution Constitutional Amendment 21 would split the revenue.
Half would go for property tax relief, and the other half would go to
school districts on a per-pupil basis.
The Chicago Teachers Union and Illinois Federation of Teachers have
pushed for state-level “Tax the Rich” policies.
Republican Illinois House candidate Lori Smith said she hoped any new
tax would not include pensions, adding that her mother is a retired
educator.
“She won’t leave this state because they don’t tax her pension. I said
to her the other day, ‘Mom, do you realize that they’re coming after it
now?’” Smith told The Center Square.
Smith said one positive thing she could say about Illinois is that the
state does not tax teacher pensions.
Smith is running for the 51st Illinois House seat currently held by
state Rep. Nabeela Syed, D-Palatine, who is running for the Illinois
Senate.
Smith cited taxes as one reason she decided to run for office.
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Illinois Gov. J.B. Pritzker speaks during an event. Photo:
BlueRoomStream / Screenshot
“For me, this is not about party. It’s about the people being
crushed to death by taxes and regulations. Somebody has to do
something,” Smith said.
Gov. J.B. Pritzker expressed support for the idea of a graduated
income tax when he spoke in Chicago earlier this month.
“I think that, to pay the bills of the state of Illinois, it’s
fairer if the wealthiest people in the state, the wealthiest
corporations in the state, pay more than average folks, working
folks and the most vulnerable,” Pritzker said.
Illinois state spending has increased 43% under Pritzker, an
increase of $16 billion annually since 2019.
The governor noted that a constitutional amendment is not something
he would sign but instead would be handled by the legislature.
If the legislature approves HJRCA 21, voters would have the chance
to consider the proposed amendment in the November 2026 general
election.
State Rep. Brad Halbrook, R-Shelbyville, said a graduated income tax
proposal would be another attempt to force through what voters
already rejected.
“After watching families pack up and leave, after watching thousands
of businesses leave, after losing nearly 100,000 people in just one
year, the answer from leadership and our speaker is the same old
answer: tax more,” Halbrook said on the House floor last week.
In 2020, voters rejected a proposal changing the state’s flat tax to
a tax with higher rates for higher earners.
Greg Bishop contributed to this story. |
