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1 | SENATE JOINT RESOLUTION
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2 | WHEREAS, The 101st General Assembly of the State of | ||||||
3 | Illinois has submitted Senate Joint Resolution Constitutional | ||||||
4 | Amendment 1, a proposition to amend the Illinois Constitution, | ||||||
5 | to the voters of Illinois at the November 2020 general | ||||||
6 | election; and
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7 | WHEREAS, The Illinois Constitution Amendment Act requires | ||||||
8 | the General Assembly to prepare a brief explanation of the | ||||||
9 | proposed amendment, a brief argument in favor of the amendment, | ||||||
10 | a brief argument against the amendment, and the form in which | ||||||
11 | the amendment will appear on the ballot, and also requires the | ||||||
12 | information to be published and distributed to the electorate; | ||||||
13 | therefore, be it
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14 | RESOLVED, BY THE SENATE OF THE ONE HUNDRED FIRST GENERAL | ||||||
15 | ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES | ||||||
16 | CONCURRING HEREIN, that the proposed form of Section 3 of | ||||||
17 | Article IX shall be published as follows: | ||||||
18 | "ARTICLE IX | ||||||
19 | REVENUE | ||||||
20 | SECTION 3. LIMITATIONS ON INCOME TAXATION | ||||||
21 | (a) The General Assembly shall provide by law for the rate |
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1 | or rates of any tax on or measured by income imposed by the | ||||||
2 | State. A tax on or measured by income shall be at a | ||||||
3 | non-graduated rate. At
any one time there may be no more than | ||||||
4 | one such tax imposed by the State
for State purposes on | ||||||
5 | individuals and one such tax so imposed on
corporations. In any | ||||||
6 | such tax imposed upon corporations the highest rate shall
not | ||||||
7 | exceed the highest rate imposed on individuals by more than a | ||||||
8 | ratio of 8 to
5.
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9 | (b) Laws imposing taxes on or measured by income may adopt | ||||||
10 | by
reference provisions of the laws and regulations of the | ||||||
11 | United States,
as they then exist or thereafter may be changed, | ||||||
12 | for the purpose of
arriving at the amount of income upon which | ||||||
13 | the tax is imposed."; and be it further
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14 | RESOLVED, That a brief explanation of the proposed | ||||||
15 | amendment, a brief argument in favor of the amendment, a brief | ||||||
16 | argument against the amendment, and the form in which the | ||||||
17 | amendment will appear on the ballot shall be published and | ||||||
18 | distributed as follows:
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1 | PROPOSED AMENDMENT | ||||||
2 | TO SECTION 3 OF ARTICLE IX | ||||||
3 | OF THE ILLINOIS CONSTITUTION | ||||||
4 | That will be submitted to the voters | ||||||
5 | November 3, 2020 | ||||||
6 | This pamphlet includes | ||||||
7 | EXPLANATION OF THE PROPOSED AMENDMENT | ||||||
8 | ARGUMENTS IN FAVOR OF THE AMENDMENT | ||||||
9 | ARGUMENTS AGAINST THE AMENDMENT | ||||||
10 | FORM OF BALLOT |
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1 | To the Electors of the State of Illinois: | ||||||
2 | The Illinois Constitution establishes a structure for | ||||||
3 | government and laws. There are three
ways to initiate change to | ||||||
4 | the Illinois Constitution: (1) a constitutional convention may | ||||||
5 | propose
changes to any part; (2) the General Assembly may | ||||||
6 | propose changes to any part; or (3)
a petition initiative may | ||||||
7 | propose amendments limited to structural and procedural | ||||||
8 | subjects
contained in the Legislative Article. The people of | ||||||
9 | Illinois must approve any changes to the
Constitution before | ||||||
10 | they become effective. The purpose of this document is to | ||||||
11 | inform you
of proposed changes to the Illinois Constitution and | ||||||
12 | provide you with a brief explanation
and a summary of the | ||||||
13 | arguments in favor of and in opposition to the proposed | ||||||
14 | amendment.
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15 | EXPLANATION
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16 | The proposed amendment grants the State authority to impose | ||||||
17 | higher income tax rates on higher income levels, which is how | ||||||
18 | the federal government and a majority of other states do it. | ||||||
19 | The amendment would remove the portion of the Revenue Article | ||||||
20 | of the Illinois Constitution that is sometimes referred to as | ||||||
21 | the "flat tax," that requires all taxes on income to be at the | ||||||
22 | same rate. The amendment does not itself change tax rates. It | ||||||
23 | gives the State the ability to impose higher tax rates on those |
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1 | with higher income levels and lower tax rates on those with | ||||||
2 | middle or lower income levels. You are asked to decide whether | ||||||
3 | the proposed amendment should become a part of the Illinois | ||||||
4 | Constitution. | ||||||
5 | Arguments in Favor of the Proposed Amendment | ||||||
6 | Illinois' current tax system unfairly benefits | ||||||
7 | millionaires and billionaires and this amendment will set | ||||||
8 | things right for middle-class and working people. Currently, it | ||||||
9 | is unfair that billionaires pay the same tax rate as regular | ||||||
10 | people. | ||||||
11 | Voting "yes" on the amendment means that the State will | ||||||
12 | enact a new tax structure where only those making above | ||||||
13 | $250,000 a year will see their taxes go up. | ||||||
14 | This amendment is simply upgrading Illinois' old tax system | ||||||
15 | to a graduated system which is how the federal government and | ||||||
16 | the majority of other states do it. | ||||||
17 | This Amendment Would Make Illinois' Tax System Fair | ||||||
18 | Approval of this amendment would enact a fair system that | ||||||
19 | allows the state to tax wealthy people at higher rates and | ||||||
20 | lower income people at lower rates, replacing Illinois' current |
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1 | unfair tax system, in which wealthy people pay the exact same | ||||||
2 | tax rate as lower and middle income people. | ||||||
3 | Illinois' current tax system unfairly benefits | ||||||
4 | millionaires and billionaires, and approval of this amendment | ||||||
5 | will set things right for the middle class and working people. | ||||||
6 | This amendment will help small business owners by creating | ||||||
7 | a stable economic environment for their businesses to thrive. | ||||||
8 | While others try to mislead you, under the current tax | ||||||
9 | system in Illinois, policymakers already have the authority to | ||||||
10 | set any tax rate and to change tax rates at their will. The | ||||||
11 | current system forces policymakers to charge the same tax rate | ||||||
12 | to everyone, regardless of how much money they make. If this | ||||||
13 | amendment passes, the State will have the ability to tax higher | ||||||
14 | income earners at a different rate. In fact, upon passage of | ||||||
15 | this Amendment, a new tax structure will go into effect where | ||||||
16 | 97% of taxpayers will pay the same or less, while only those | ||||||
17 | making more than $250,000 a year will see a tax increase. | ||||||
18 | This amendment does not tax retirement income. | ||||||
19 | The Federal Government and Most States Use the Graduated Tax | ||||||
20 | System Proposed in this Amendment, Not the Unfair System | ||||||
21 | Currently Used in Illinois |
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1 | Illinois is among a minority of states that do not utilize | ||||||
2 | graduated tax rates because the Illinois Constitution requires | ||||||
3 | a "flat tax" that penalizes middle-class and working people and | ||||||
4 | benefits higher income individuals. | ||||||
5 | A majority of states and the federal government already use | ||||||
6 | the kind of graduated income tax system proposed in this | ||||||
7 | amendment to ensure that wealthy people pay their fair share of | ||||||
8 | taxes. | ||||||
9 | Nearby states including Iowa, Minnesota, Missouri, Ohio, | ||||||
10 | and Wisconsin are among the majority of states that have | ||||||
11 | graduated tax systems. | ||||||
12 | Illinois' Current Income Tax System Relies on Taxes from Middle | ||||||
13 | and Lower Income Earners, While a Graduated System Would Lower | ||||||
14 | that Burden and Fund Critical Programs such as Education and | ||||||
15 | Human Services | ||||||
16 | While some states have fair tax rates in which the highest | ||||||
17 | income earners pay the highest tax rate, Illinois' "flat tax" | ||||||
18 | rate continues to rely unfairly on taxes from middle and lower | ||||||
19 | income earners. | ||||||
20 | Under Illinois' "flat tax" structure, a nurse making |
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1 | $50,000 per year pays the same tax rate as an executive making | ||||||
2 | $4 million per year. A graduated tax rate would have the | ||||||
3 | executive pay more. | ||||||
4 | Because of the way our current tax system is set up, the | ||||||
5 | bottom fifth of Illinois taxpayers (those making below $21,800) | ||||||
6 | contribute 14.4% of their income to state and local taxes, | ||||||
7 | compared to 7.4% for the top 1 percent of Illinois taxpayers. | ||||||
8 | If this Amendment passes, the State has already enacted a | ||||||
9 | new graduated tax structure where 97% of taxpayers will pay the | ||||||
10 | same or less. | ||||||
11 |
Under the new tax structure, only the top 3% of Illinois | ||||||
12 | income earners would pay more in income taxes. Everyone who | ||||||
13 | makes $250,000 or less a year would pay the same or less. | ||||||
14 |
Over 95% of small businesses earn $250,000 or less a year | ||||||
15 | in profits, and their owners will not see a tax increase under | ||||||
16 | the new tax structure. | ||||||
17 |
This change will generate additional revenue each year | ||||||
18 | that can help address Illinois' budget deficit and fund | ||||||
19 | critical programs, including the State's education system, | ||||||
20 | public safety, and social services like mental health and | ||||||
21 | substance abuse treatment and domestic violence shelters. |
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1 | After the COVID-19 Pandemic, We Need to Do All We Can to Help | ||||||
2 | the Economy and Middle-Class and Working People | ||||||
3 | Working people and essential workers like nurses, first | ||||||
4 | responders, and grocery store clerks should not pay the same | ||||||
5 | tax rate as the wealthy. Nurses making $50,000 a year should | ||||||
6 | not pay the same tax rate as an executive making $4,000,000 a | ||||||
7 | year. | ||||||
8 | Having wealthy people pay more would reduce the burden on | ||||||
9 | working families. This is money that middle and lower income | ||||||
10 | people need for housing, groceries, medicine, and essentials. | ||||||
11 | When the wealthiest people pay more, middle and lower | ||||||
12 | income earners can pay less while the State funds critical | ||||||
13 | services that our essential workers rely on. | ||||||
14 | Arguments Against the Proposed Amendment
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15 | 1. The Amendment gives the Legislature power to increase | ||||||
16 | taxes on any group of taxpayers with no limits and no | ||||||
17 | accountability and without any requirement to use the | ||||||
18 | additional revenue to fund essential needs such as healthcare, | ||||||
19 | education, or public safety. |
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1 | 2. Taxes and spending are out of control. The Legislature | ||||||
2 | should not be allowed to keep raising taxes until they get | ||||||
3 | their spending under control.
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4 | 3. In the wake of the COVID-19 pandemic, now is the worst | ||||||
5 | possible time for a massive tax increase.
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6 | The Amendment gives the Legislature power to increase taxes on | ||||||
7 | any group of taxpayers with no limits and no accountability and | ||||||
8 | without any requirement to use the additional revenue to fund | ||||||
9 | essential needs such as healthcare, education, or public | ||||||
10 | safety. | ||||||
11 | The proposed amendment would give the Legislature | ||||||
12 | unlimited new authority to increase income tax rates on any | ||||||
13 | group of taxpayers at will, including low-income and | ||||||
14 | middle-income families and small business owners. There would | ||||||
15 | be no limit on the number of tax brackets that could be created | ||||||
16 | and no limit on how high tax rates could be increased on | ||||||
17 | individual taxpayers. In addition, this proposed change will | ||||||
18 | pave the way for a tax on retirement income. | ||||||
19 | Nothing in the amendment requires the Legislature to do | ||||||
20 | anything to control spending. Nor does it require funds to be | ||||||
21 | spent on essential needs such as healthcare, education, or | ||||||
22 | public safety. It would simply give the Legislature a blank |
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1 | check to spend billions of dollars however they want, with no | ||||||
2 | accountability. | ||||||
3 | Taxes and spending are out of control. The Legislature should | ||||||
4 | not be allowed to keep raising taxes until they get their | ||||||
5 | spending under control. | ||||||
6 | Illinois already has some of the highest property taxes and | ||||||
7 | sales taxes in the nation. And the Legislature has increased | ||||||
8 | Illinois income tax rates twice in the past decade to try to | ||||||
9 | deal with the out-of-control spending in Springfield. | ||||||
10 | Even before the COVID-19 pandemic, our state had a huge and | ||||||
11 | growing multi-billion-dollar budget deficit, and the unfunded | ||||||
12 | pension liability skyrocketed to over $137 billion. That's | ||||||
13 | because the Legislature has continued to increase state | ||||||
14 | spending instead of eliminating government waste, corruption, | ||||||
15 | and abuse. | ||||||
16 | Because they refuse to control spending or pass major | ||||||
17 | reforms, the Legislature will just continue to raise taxes on | ||||||
18 | everyone in Illinois, and middle-class families will be their | ||||||
19 | next target. | ||||||
20 | In the wake of the COVID-19 pandemic, now is the worst possible | ||||||
21 | time for a massive tax increase. |
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1 | The COVID-19 pandemic caused layoffs, unemployment, | ||||||
2 | bankruptcies, and closures. As small businesses and local | ||||||
3 | employers struggle to rebuild, this is the worst possible time | ||||||
4 | to impose huge new tax increases. Even before the COVID 19 | ||||||
5 | crisis, many residents and businesses were leaving the state | ||||||
6 | because of the high tax burden. If the Amendment passes, it | ||||||
7 | would be the last straw for thousands of small businesses, | ||||||
8 | causing more jobs to leave the state, and making Illinois lose | ||||||
9 | out on investments to rebuild our economy. This would mean | ||||||
10 | fewer jobs and less opportunity for Illinois families. | ||||||
11 | FORM OF BALLOT | ||||||
12 | Proposed Amendment to the 1970 Illinois Constitution
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13 | Explanation of Amendment
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14 | The proposed amendment grants the State authority to impose | ||||||
15 | higher income tax rates on higher income levels, which is how | ||||||
16 | the federal government and a majority of other states do it. | ||||||
17 | The amendment would remove the portion of the Revenue Article | ||||||
18 | of the Illinois Constitution that is sometimes referred to as | ||||||
19 | the "flat tax," that requires all taxes on income to be at the | ||||||
20 | same rate. The amendment does not itself change tax rates. It | ||||||
21 | gives the State the ability to impose higher tax rates on those | ||||||
22 | with higher income levels and lower income tax rates on those |
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1 | with middle or lower income levels. You are asked to decide | ||||||
2 | whether the proposed amendment should become a part of the | ||||||
3 | Illinois Constitution. | ||||||
4 | -------------------------------------------------------------
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5 | YES For the proposed amendment
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6 | ---------- of Section 3 of Article IX
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7 | NO of the Illinois Constitution.
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8 | -------------------------------------------------------------
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