Illinois residents have rejected the ballot measure that would have changed the state’s income tax from a flat rate to a graduated rate.
What We Know:
- The Associated Press called the race early on Wednesday with 98% of precincts reporting. The Fair Tax proposal fell well short of the required 60% threshold to pass, only garnering 45% of the vote.
- The Fair Tax would have repealed Illinois’ flat tax rate of 4.95% and introduced a graduated income tax. The proposal would have raised taxes for those making more than $250,000 a year and progressively increased the rates for subsequent income brackets.
“We are undoubtedly disappointed with this result but are proud of the millions of Illinoisans who cast their ballots in support of tax fairness in this election.” – Quentin Fulks, Chairman of Vote Yes For Fairness
- 32 states in the U.S. have some form of graduated income tax, progressively raising the tax rate for higher-earning income brackets. Governor J.B. Pritzker campaigned in support of the Fair Tax amendment as Illinois’ budget deficit has drastically worsened during the pandemic.
- Campaigns for and against the amendment were well funded. Pritzker himself poured $56 million to support the proposal. Billionaire Ken Griffin, Illinois’ richest man, spent near $54 million to stop the amendment from passing.
- Much of that money went into local TV ads for Illinois residents. Most ads in favor of the Fair Tax touted that 97% of Illinois residents would see a tax cut. Ads against the amendment banked on dislike of Illinois politicians, implying that Springfield can’t be trusted and that they would come for middle-class families eventually.
Illinois officials estimate that 300,000 to 400,000 ballots could still be returned and legally counted, but the Vote Yes For Fairness political committee has already conceded.
