Illinois has a tax system that requires working and middle-class families to pay higher shares of their incomes towards state and local taxes than high-income earners. State lawmakers have debated whether to amend the Illinois Constitution to allow for higher income taxes on annual net incomes over $1 million, with new revenues lock-boxed and dedicated specifically for property tax relief or for public education. Three-fifths of Illinois voters have said they would support a “millionaires’ tax” that funds property tax relief (61 percent) or local school districts (60 percent) in advisory referenda. This report evaluates how a potential millionaire’s tax could impact education funding, property taxes, and the Illinois economy.
