{"id":26724,"date":"2026-01-05T14:33:07","date_gmt":"2026-01-05T20:33:07","guid":{"rendered":"https:\/\/www.thexradio.com\/news\/?p=26724"},"modified":"2026-01-05T14:33:07","modified_gmt":"2026-01-05T20:33:07","slug":"despite-mounting-budget-pressure-graduated-income-tax-remains-political-longshot","status":"publish","type":"post","link":"https:\/\/www.thexradio.com\/news\/local-news\/26724-despite-mounting-budget-pressure-graduated-income-tax-remains-political-longshot\/","title":{"rendered":"Despite Mounting Budget Pressure, Graduated Income Tax Remains Political Longshot"},"content":{"rendered":"<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-right\"><a href=\"javascript: window.print()\" class=\"pdfprnt-button pdfprnt-button-print\" target=\"_self\" ><img decoding=\"async\" src=\"https:\/\/www.thexradio.com\/news\/wp-content\/plugins\/pdf-print\/images\/print.png\" alt=\"image_print\" title=\"Print Content\" \/><span class=\"pdfprnt-button-title pdfprnt-button-print-title\">Print<\/span><\/a><\/div><p><span style=\"font-weight: 400;\">By BRENDEN MOORE<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Capitol News Illinois\u00a0 <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><a href=\"mailto:bmoore@capitolnewsillinois.com\"><span style=\"font-weight: 400;\">bmoore@capitolnewsillinois.com<\/span><\/a><span style=\"font-weight: 400;\">\u00a0\u00a0<\/span><\/p>\n<p><b>Article Summary<\/b><span style=\"font-weight: 400;\">\u00a0\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gov. JB Pritzker is not making a graduated income tax a priority in 2026, despite backing the idea in principle and mounting budget pressures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Democratic lawmakers have introduced proposals to put a progressive tax amendment on the ballot, citing a growing structural deficit, federal cuts under the Trump administration and hopes of delivering tax relief to the middle class.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Illinois faces a multibillion-dollar budget shortfall in coming years, renewing debate over tax reform options after voters rejected a graduated income tax in 2020.<\/span><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">This summary was written by the reporters and editors who worked on this story.<\/span><\/i><span style=\"font-weight: 400;\">\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">SPRINGFIELD \u2014 When a progressive Chicago alderperson scolded Gov. JB Pritzker in November over his opposition to Mayor Brandon Johnson\u2019s failed proposal to tax large corporations $21 per employee, Illinois\u2019 billionaire chief executive was quick with a retort defending his progressive bona fides.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhat we need is a progressive income tax, a graduated income tax in this state,\u201d Pritzker told Chicago Ald. Byron Sigcho-Lopez, a democratic socialist who confronted him following a Veterans Day commemoration in Little Village. \u201cYou know that I\u2019ve worked very hard to get that passed.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pritzker poured $58 million into the 2020 campaign advocating for a change in the state constitution to allow for an income tax structure that would charge higher rates for higher levels of income.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For nearly six decades, Illinois\u2019 had a flat income tax that charges one rate each for individuals and corporations regardless of income level. But Illinois voters ultimately rejected the proposal to change it, leaving the tax rate at 4.95% for individuals. It only received 46% support, far below the threshold needed to change the state constitution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the years since the flameout, Pritzker and Democrats who control the state legislature have mostly shied away from the cause \u2014 all while managing to balance the books under the existing tax structure, largely thanks to a strong economy and federal aid in the years after the pandemic.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are signs, however, that the state\u2019s chronic fiscal challenges are reemerging and likely to be exacerbated by federal policy changes enacted by the Trump Administration. Despite this, it appears the graduated income tax will also be off the table as a remedy, at least in 2026.<\/span><\/p>\n<p><b>Read more: <\/b><a href=\"https:\/\/capitolnewsillinois.com\/news\/illinois-budget-on-track-for-deficit-as-new-federal-policies-create-challenges\/\"><b>Illinois\u2019 budget on track for deficit as new federal policies create challenges<\/b><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Pritzker, who put the \u201cfair tax\u201d at the center of his 2018 gubernatorial campaign and served as its chief champion during the failed 2020 referendum campaign, told reporters in November that putting the question on the ballot is \u201cnot something that&#8217;s been a priority for me going into the next session.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cI think it&#8217;s something that is being talked about by members of the General Assembly \u2014 we&#8217;ll have to see if it gets proposed,\u201d Pritzker said, reiterating his belief that \u201ca graduated system is better than a flat tax system.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pritzker is running for reelection in 2026 and is widely viewed as a potential Democratic candidate for president in 2028.\u00a0<\/span><\/p>\n<p><b>Renewed push<\/b><\/p>\n<p><span style=\"font-weight: 400;\">While Pritzker isn\u2019t putting it at the top of his agenda, some Democrats in the legislature would like to again place a graduated income tax question before the voters.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">State Sen. Rob Martwick, D-Chicago, introduced legislation in both 2023 and 2025.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The first was a lone-wolf effort that did not get called before the 2024 election. But Martwick has 17 co-sponsors on his current resolution. And similar legislation in the House, filed by state Rep. Abdelnasser Rashid, D-Bridgeview, has more than two dozen co-sponsors.<\/span><\/p>\n<p><strong>MARTWICK\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The deadline for lawmakers to pass a resolution to place an amendment on the 2026 ballot is May 3.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cI feel like there is this huge appetite for some sort of restructuring of our tax system to make it less regressive (and) to provide relief to middle and working class people,\u201d Martwick told Capitol News Illinois.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Republicans and the state\u2019s business community have long opposed the idea. The 2020 initiative was in part torpedoed by a relentless $60 million ad campaign that was mostly funded by billionaire Ken Griffin, the state\u2019s wealthiest resident at the time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From a policy perspective, a graduated income tax structure is one of the easiest ways to rectify the state\u2019s chronic structural budget deficit while simultaneously shifting the tax burden to its wealthiest residents, advocates say.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Those points have been reinforced this year amid fallout from President Donald Trump\u2019s One Big Beautiful Bill Act, which granted significant tax relief to the country\u2019s top earners while slashing social spending that states like Illinois have relied upon to balance their budgets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the governor\u2019s budget office, the state is facing a $2.2 billion budget deficit next fiscal year \u2014 a number that could grow to more than $5 billion by 2031. The numbers are based on current law, meaning they assume no new spending or tax increases.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Changes enacted in Trump\u2019s signature law \u2014 such as a requirement that states spend more on the Supplemental Nutrition Assistance Program and reductions to Medicaid \u2014 could exacerbate the state\u2019s fiscal issues.<\/span><\/p>\n<p><b>\u2018The party\u2019s over\u2019<\/b><\/p>\n<p><span style=\"font-weight: 400;\">When the graduated tax amendment <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/with-graduated-tax-failure-there-will-be-cuts-and-they-will-be-painful-governor-says\/\"><span style=\"font-weight: 400;\">failed in 2020<\/span><\/a><span style=\"font-weight: 400;\">, Pritzker lashed out at Republicans and the business community, declaring state tax policy \u201cat a crossroads\u201d and warning \u201cthere will be cuts, and they will be painful.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">.But with boosts from federal stimulus funds and increased tax receipts spurred by post-pandemic economic activity, Pritzker and state lawmakers have been able to enact balanced budgets in all but one of his seven years in office, with COVID-impacted 2020 the outlier. And the state has paid off a backlog of bills that had ballooned to more than $16 billion during the height of a state budget impasse a decade ago.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But that boon is over. The past two years, lawmakers had to enact a series of tax hikes and other revenue enhancements to keep the budget balanced.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe party&#8217;s over,\u201d Ralph Martire, the executive director of the Center of Budget and Tax Accountability, told Capitol News Illinois. \u201cAnd the party&#8217;s over because Illinois&#8217; long-term structural problems in their fiscal policy have never been resolved. So the state&#8217;s tax policy doesn&#8217;t work in a modern economy.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Martire\u2019s organization has long advocated for restructuring the state\u2019s tax policy, including broadening the sales tax base to include services like haircuts and lawn care. It has also advocated for a graduated income tax structure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He argues it is simple math \u2014 the state needs to capture revenue in growth areas. And in the decades since Illinois enacted an income tax, income has increased most among the state\u2019s wealthiest residents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThat&#8217;s the textbook way,\u201d Martire said. \u201cThe ideal thing to do would be to amend the constitution to permit a graduated rate structure. But what you also don&#8217;t want to do, because there&#8217;s been some advocates of this, is put that rate structure in your constitution.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another proposed amendment being floated by former Democratic Gov. Pat Quinn would place a 3% surcharge on income over $1 million. The tax would raise an estimated $4.5 billion and be set aside for property tax relief. Quinn\u2019s effort comes after <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/capitol-briefs-former-gov-quinn-pushes-for-millionaire-tax-amendment-underground-railroad-task-force-issues-findings\/\"><span style=\"font-weight: 400;\">61% of Illinois voters signaled support<\/span><\/a><span style=\"font-weight: 400;\"> for the idea when asked in an advisory referendum question on the 2024 ballot.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe have an upside down tax code right now,\u201d Quinn told reporters in November. \u201cWe give all kinds of tax breaks to millionaires, and we have higher property tax bills for everyday people, and that&#8217;s not the way to go if you want to have a fair society that emphasizes home ownership and affordability and also emphasizes the proper way to fund education.\u201d<\/span><\/p>\n<p><strong>QUINN<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Quinn\u2019s populist approach to policymaking has not always been warmly received by state lawmakers, but he insisted that his idea can pass as \u201cit&#8217;s a little easier to understand the millionaire amendment than the question that was put on the ballot in 2020.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Like the graduated plans already proposed, Quinn\u2019s plan would have to receive three-fifths support in the legislature to get on the 2026 ballot.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">State Rep. Natalie Manley, D-Joliet, filed legislative language for a millionaire\u2019s tax last year. Her proposal, which does not have any cosponsors, differs slightly from Quinn\u2019s as revenue raised would be split evenly between property tax relief and education funding.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lawmakers could also take an approach that wouldn\u2019t require a constitutional amendment. This would involve raising the flat income tax rate while also upping refundable tax credits for low- and middle-income taxpayers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Illinois currently has an earned income tax credit available for people earning up to about $67,000. The state also offers a child tax credit to those who qualify for the state EITC who have at least one dependent child. Such credits have been found to stand up to state constitutional muster.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Martwick said that would be \u201can acceptable Plan B,\u201d but thinks \u201cwe should always try for the best policy first.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAnd I think that would be a constitutional amendment that provides a really good, well thought out, structured plan that allows everyone to contribute and have skin in the game, but in a way that allows everyone to thrive and isn&#8217;t overburdening one segment over another,\u201d Martwick said.\u00a0<\/span><\/p>\n<p><b>Income tax origin<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Illinois\u2019 first income tax was enacted in 1969. It was championed by Republican Gov. Richard Ogilvie as a way to plug a budget deficit, reduce reliance on sales and local property taxes and to increase funding for education.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ogilvie originally proposed a flat 3% to be charged across the board. But state lawmakers eventually settled on 2.5% for individuals and 4% for corporations \u2014 a compromise forged with Chicago Mayor Richard J. Daley in exchange for Democratic votes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The flat rates were necessary to comply with the uniformity clause of the state\u2019s constitution.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When a convention was held in 1970 to create a new constitution, the tax was so new that delegates\u2019 focus was enshrining it into the new document \u2014 not messing with the rate structure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As such, delegates adopted language permitting one rate for individuals and one for corporations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The individual rate hovered between 2.5% and 3% until 2011, when state lawmakers enacted what was billed as a temporary increase to 5% to help fill a budget deficit and pay down overdue bills. The rate reverted to 3.75% in 2015. But it was permanently raised to 4.95% in 2017 when legislative Democrats and a handful of Republicans overrode a veto from then-Gov. Bruce Rauner to end a more than two-year state budget impasse.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The state\u2019s corporate tax was temporarily raised from 4.8% to 7% in 2011. It went back down to 5.25% in 2015 before being permanently raised to 7% in 2017. Businesses also pay a 2.5% personal property replacement tax, which makes the effective rate 9.5%.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/capitolnewsillinois.com\/\"><i><span style=\"font-weight: 400;\">Capitol News Illinois<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By BRENDEN MOORE Capitol News Illinois\u00a0 bmoore@capitolnewsillinois.com\u00a0\u00a0 Article Summary\u00a0\u00a0 Gov. JB Pritzker is not making a graduated income tax a priority in 2026, despite backing the idea in principle and [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":4807,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[19],"tags":[],"class_list":["post-26724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-local-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Despite Mounting Budget Pressure, Graduated Income Tax Remains Political Longshot - Effingham&#039;s News and Sports Leader, 979XFM and KJ Country 102.3<\/title>\n<meta name=\"description\" content=\"Effingham&#039;s News and Sports Leader\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thexradio.com\/news\/local-news\/26724-despite-mounting-budget-pressure-graduated-income-tax-remains-political-longshot\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Despite Mounting Budget Pressure, Graduated Income Tax Remains Political Longshot - 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