Illinois House Speaker Emanuel “Chris” Welch has expressed strong support for a proposed 3% income tax on individuals earning more than $1 million annually, a measure intended to generate approximately $4.5 billion in additional revenue. However, divisions remain within the Democratic caucus over how the funds should be allocated, particularly regarding property tax relief and school funding.

Two competing constitutional amendments have been introduced to place the millionaire’s tax question on the November ballot. One, sponsored by state Rep. La Shawn Ford (D-Chicago), proposes directing all revenue from the tax toward property tax relief, specifically providing $1,500 rebates to property owners. The other, put forward by state Rep. Natalie Manley (D-Joliet), suggests splitting the revenue equally between public schools and property tax relief.

Neither proposal has yet been brought to a vote in the Illinois House, with lawmakers facing a May 3 deadline to pass constitutional amendment measures to qualify for the November 3 general election ballot. Speaking recently with a Chicago public radio station, Welch emphasized his backing of the tax itself but stopped short of endorsing either plan. “There are lots of conversations still being had,” he said, affirming his belief that those with greater financial means should contribute more.

Governor J.B. Pritzker has also thrown his support behind an additional income tax on the state’s highest earners. In 2020, Pritzker invested heavily in a failed effort to amend the state constitution to allow a graduated income tax. He reiterated his position earlier this year, arguing it would be “fairer” for wealthier individuals and corporations to pay a larger share of state revenues.

Under the new proposals, earnings over $1 million would be subject to a 3% surcharge. For example, based on their 2024 tax filings, Governor Pritzker and his wife would owe an estimated additional $280,375 annually under the measure.

The debate over the millionaire’s tax takes place amid widespread concern about rising property taxes, which have increased at twice the rate of inflation over the past three decades in Chicago and suburban Cook County, according to a recent analysis by Cook County Treasurer Maria Pappas. Property tax relief is considered an electoral priority for many Democrats heading into the fall elections.

Welch described the millionaire’s tax as a “reasonable” approach to addressing affordability challenges facing Illinois residents, while also helping to reduce the state’s pension liabilities and improve funding for historically underfunded school districts. He suggested that increased school funding could pave the way for legislation limiting future property tax increases.

Manley underscored the importance of maintaining strong school funding alongside property tax relief, aiming for public education to remain a “gold standard.” Ford, meanwhile, emphasized the immediate impact property tax relief would have on Illinois families and plans to advocate strongly for his proposal, which does not include additional school funding.

Efforts to establish a millionaire’s tax in Illinois have spanned more than a decade. Voters approved nonbinding ballot measures supporting a 3% tax surcharge in 2014 and again in 2024. Despite these endorsements, the Democratic-controlled legislature has yet to enact the tax, failing to pass necessary legislation in recent spring sessions.

Former Governor Pat Quinn, a longtime advocate of the tax, has endorsed Ford’s property tax relief plan and urged current lawmakers not to disregard voter preferences amid growing affordability concerns statewide. “The voters told the Legislature and the governor what the people wanted in 2024,” Quinn said. “You don’t want to turn your back on the voters … especially now where there’s an affordability issue all across Illinois.”