Government
3:06 pm
Thu March 27, 2014

IL lawmakers advance millionaire tax legislation

A tax on millionaires is advancing through the General Assembly, at the expense of a progressive income tax.  

The so-called "Millionaire's Tax" would levy a three percent surcharge on income over a $1 million. House Speaker Michael Madigan says that should raise about a billion dollars, which Illinois would send exclusively to schools.

"My judgment was that it helps education and it calls upon those in the society that are better able to help fund education than others."

But Republicans like Rep. David Harris, of Arlington Heights, say Madigan's plan punishes entrepreneurs for their innovations and business success, and could chase them out of the state.

"We are saying to them, 'Fine. Do it here, but guess what? We're going to hit you hard when you hit that million dollars."

Moments after a House committee passed the millionaire tax, it rejected a proposal to replace Illinois' flat tax with a graduated one where the more you earn, the more you pay. Both plans require amending the state constitution.