A push for a ballot question to impose higher taxes on Illinois’ millionaires failed Wednesday.
Democratic House Speaker Michael Madigan’s proposed constitutional amendment would have increased the tax rate 3 percentage points on those making more than $1 million. The state’s flat, individual tax rate now is 3.75 percent.
Madigan said the money raised would have gone to public schools.
Click here for summary
“The people of your districts have spoken,” Madigan said. “It’s time to listen to their voice, not the voice of the one-percenters or those who would put profits ahead of education.”
State Rep. Ron Sandack, R-Downers Grove, said this bill is purely a political vote to be used as campaign fodder for the upcoming election.
“This is not a true vote on the question at hand,” Sandack said. “It’s a political gotcha moment.”
State Rep. David Harris, R-Arlington Heights, said this bill slows small business growth.
According to an analysis of 2011 Internal Revenue Service data, about one-fourth of the potential tax revenue from a rate hike on millionaires would come from small businesses.
“It’s those small businesses that are going to feel a real impact. It's a real disincentive to them to do more just because they’re going to be taxed more,” Harris said.
The proposal needed 71 votes to pass but received only 68. Voters supported a tax on millionaires on a 2014 advisory ballot question.