Illinois Fair Tax

Fair Tax Amendment, 2020

Concerns the Adoption of Graduated Income Tax
Results
Choice
Votes %
Yes 2,683,490 46.73%
No 3,059,411 53.27%
Valid votes 5,742,901 100.00%
Invalid or blank votes 0 0.00%
Total votes 5,742,901 100.00%

The Illinois Fair Tax was a proposed amendment to the Illinois state constitution that would have effectively changed the state income tax system from a flat tax to a graduated income tax. The proposal, formally titled the "Allow for Graduated Income Tax Amendment", appeared on the ballot in the November 3, 2020 election in Illinois as a legislatively referred constitutional amendment striking language from the Constitution of Illinois requiring a flat state income tax.[1][a] Concurrent with the proposed constitutional amendment, the Illinois legislature passed legislation setting a new set of graduated income tax rates that would have taken effect had the amendment been approved by voters.

Proponents argued that the proposal would make the Illinois tax code fairer, provide tax relief to most Illinoisans, better fund public goods and social services, and boost small businesses. Opponents argued it would open the door to future tax hikes, hurt businesses, drive businesses and wealthy residents to neighboring states, and place more revenues in the hands of an untrustworthy state government.

The referendum was not approved, receiving about 47% "yes" votes and 53% "no" votes. As a constitutional amendment, the proposal needed to be approved by 60% of those voting on the referendum, or by 50% of all voters voting in the election.[2]

The term "Fair Tax" is used by legislative proponents and advocates of the proposed amendment, who consider a graduated income tax to be more fair than a flat tax. Opponents of the proposal refer to it using other, less favorable terms.[3]

  1. ^ Sfondeles, Tina (May 27, 2019). "Graduated income tax question heads to ballot as House OKs constitutional amendment". chicagosuntimes.com. Chicago Sun Times. Archived from the original on May 30, 2019. Retrieved May 30, 2019.
  2. ^ Cite error: The named reference Pearson was invoked but never defined (see the help page).
  3. ^ Pearson, Rick (September 18, 2020). "Fair Tax or Tax Hike? Emotional Arguments Project Hope and Fear as Voters Set to Decide What Could Be Illinois' Biggest Taxation Shift in Decades". Chicago Tribune. Archived from the original on September 19, 2020. Retrieved September 19, 2020.


Cite error: There are <ref group=lower-alpha> tags or {{efn}} templates on this page, but the references will not show without a {{reflist|group=lower-alpha}} template or {{notelist}} template (see the help page).