Illinoisans Will Vote on Tax Hike to Fund Property Tax Rebates

Proposal Seeks to Levy Additional Income Tax on High Earners

Illinois voters will consider a ballot question in the upcoming election that would generate $4.5 billion in property tax rebates by imposing a new income tax on high earners. The measure, if passed, would amend the state constitution to create a graduated income tax system, with higher rates for individuals and businesses earning above $1 million per year.

Current Property Tax System

Illinois currently has a flat income tax rate of 4.95%, meaning that all taxpayers pay the same percentage of their income in taxes regardless of their income level. The state also has a property tax system in which local governments levy taxes on real estate to fund local services such as schools, roads, and police protection. Property taxes are often a significant financial burden for homeowners, particularly in areas with high property values.

Proposed Tax Changes

The proposed ballot question would replace the flat income tax rate with a graduated system. Under this system, the tax rate would increase for individuals earning over $250,000 per year and for businesses earning over $500,000 per year. The top tax rate would be 7.99% for individuals earning over $1 million per year and for businesses earning over $5 million per year.

The revenue generated from the increased income tax would be used to fund property tax rebates for homeowners. The amount of the rebate would be based on the homeowner's income and property tax bill, with lower-income homeowners receiving larger rebates.

Arguments For and Against

Supporters of the ballot question argue that it would provide much-needed financial relief to homeowners, particularly those struggling to pay their property taxes. They also contend that the new tax revenue would help fund essential local services without raising taxes on middle-class families.

Opponents of the measure argue that it would place an unfair tax burden on high earners and businesses. They also contend that the property tax rebates would be insufficient to offset the increased income tax for many homeowners.

Conclusion

The Illinois ballot question on taxing income over $1 million to generate property tax rebates is a complex issue with both potential benefits and drawbacks. Voters should carefully consider the arguments for and against the measure before casting their ballots.