* From a press release
House Speaker Michael J. Madigan on Thursday laid out a plan to increase funding for schools across the state by $1 billion a year with dollars generated by imposing a tax surcharge on millionaires.
“Over the last several years, every area of Illinois has experienced school closures, teacher layoffs and classroom cuts due to reduced education funding that has been forced by a crowding out of state revenues,” Madigan said. “This is not a complete solution to our education funding issues, but it is a fair and equitable way to reverse a decline brought on by the national economic problems and will help address a number of spending pressures that vary among school districts.”
Under Madigan’s proposal, individual income up to $1 million would continue to be taxed at the current personal rate. Any income over $1 million would be charged an additional 3 percent. The additional funding raised for Illinois schools would be distributed on a per pupil basis to every school district. Funding would be based on 2014 income tax liability and distributed to schools in 2015.
“This plan brings long overdue fairness to the state tax structure and provides a needed boost to education funding to help give our children more of the resources they need to succeed,” Madigan said. “Some districts may see a need to use these resources for capital construction, while others will want to offer local property tax relief. Illinois is not a one-size-fits-all state and this increase on millionaires recognizes the need for school districts to set their own priorities when spending state dollars.”
In recent days, the Speaker has briefed legislators on the proposed amendment. He hopes to present his amendment before a committee in the coming days and gain full House and Senate approval in time to place the question on the November general election ballot. Constitutional amendment questions must pass by May 5 in order to be placed on the fall ballot.
Even with the increase, the state tax rate on millionaires would not be out of line with tax rates in surrounding states
I wonder what Americans for Prosperity and Bruce Rauner will think of that idea?