House Speaker Michael Madigan is at it again, attempting to raise taxes. He’s again proposing a constitutional amendment, HJRCA 26, his so-called “Millionaire’s Tax.” This same proposal was defeated in 2014 and last year, and for good reason. This measure could be voted on as early as today so please click here to contact your legislators andurge them to oppose the Madigan Tax …again!
When Madigan suggested this in 2014, the non-partisan Tax Foundation wrote, “a large share of Illinois employers would be impacted by this legislation, since 61% of employers in (Illinois) are pass-through entities. This includes a large number of small businesses and firms in several of the state’s key industries.”
Tantamount to a tax on those who are providing the jobs Illinoisans desperately need, this would be a punitive tax on a highly-mobile group of people largely comprised of job creators and small business owners who operate pass-through entities (meaning the business taxes are paid via the owner’s individual income tax return). Tell your legislators to reject Speaker Madigan’s tax hike!
Not only would this legislation be bad for Illinois’ jobs outlook, but there are problems with the amendment itself. It seeks to write a percentage (3%) and a dollar figure ($1 million) into the Illinois Constitution. No other state has either in their state constitution. While $1 million sounds like a considerable sum, and it is, what will it look like over time? Consider that $164,000 in 1970, when the current Illinois Constitution was written, would be worth $1 million today.
Additionally, while the amendment specifically dedicates the additional revenue to public education, there’s nothing preventing those dollars from merely supplanting, rather than supplementing, current education funding. Please click here to contact your legislator and urge them to oppose this new tax.