Illinois considers 3% ‘millionaire tax’: Would it provide property tax relief?

SPRINGFIELD, Ill. (WTVO) – Voters in Illinois will get a chance to decide whether Illinois millionaires should pay an additional tax to fund a statewide property tax relief fund.

Former Illinois Governor Pat Quinn is advocating for an amendment expected to provide around $4.5 billion in property tax relief for middle-class residents by establishing a property tax relief fund, requiring the state’s millionaires to pay a 3% surcharge on their annual income tax returns.

“People living paycheck to paycheck, people living in a house and not wanting that property tax bill to drive them out of their house,” Quinn said Thursday. “Home ownership is important in Illinois and I think we’ve got to do something at the ballot box to straighten things out.”

Critics of the plan say the policy will deter capital and entrepreneurs from coming to the state.

“All it’s really going to do in the long term is push future employers out of the state of Illinois, business owners and entrepreneurs who in many instances are the ones that have taken the risk and built,” said Rep. Martin McLaughlin (R-Barrington Hills). “Businesses hire people. Those are the guys that they’re going after. So, it’s a success tax.”

A referendum calling for the amendment will be on the November 5th general election ballot.

Lawmakers do not have to pass any legislation related to referendums, but it can be used by voters to raise an issue.

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