Illinois House Speaker Welch Proposes Millionaire Tax to Address $2.2 Billion Budget Shortfall

In Springfield, Illinois, House Speaker Emanuel “Chris” Welch is advocating for a fresh tax targeting millionaires as the General Assembly reconvenes next week.

The proposal emerges amidst a daunting $2.2 billion budget shortfall faced by the lawmakers.

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With elections on the horizon, Chicago Mayor Brandon Johnson may need to hold off on seeking state approval for his progressive taxation concepts until next year.

However, there is a notable momentum among state legislators to levy higher taxes on the affluent.

“We’ve done this in the past,” remarked the Democratic speaker.

In a recent discussion, Welch appeared undeterred by the looming $2 billion fiscal gap.

“Tomorrow is my five-year anniversary as speaker of the House. And I think every year, in January, going into the start of session, we’ve been faced with a deficit,” Welch said.

This session, the focus will be on affordability. It’s something that Democrats and Republicans define differently.

“In the veto session, passing that transit reform bill was historic. If that’s not an affordability bill, I don’t know what is,” Welch said.

“Under him, over the last five years, our budget, it’s gone from $40 billion to $55 billion. So, I don’t really know what affordability means to me. One thing that it cannot mean, and I don’t think it will mean in a campaign year, is increase in taxes,” House Republican Leader state Rep. Tony McCombie said.

Speaker Welch suggested Mayor Johnson’s hopes for state approval for progressive taxes, such as one on professional services, may go nowhere.

“We’re going to put those things through the hopper like we would any other idea. I don’t know if there’s an appetite for anything right now,” Welch said.

A tax surcharge on incomes over a million dollars, modeled after Massachusetts, which Forbes reports saw a windfall of $5.7 billion during the first two years, is possible, he said.

“I have been a very big believer that the wealthy should pay more, that they should pay their fair share, and I think a surcharge tax on millionaires is an easy way to do it,” Welch said.

“You know, I think it’d just be another thing to make us unfriendly to folks that have assets and resources to come here and want to build and grow their businesses,” McCombie said.

As for the Bears, Welch said he’d be open to state infrastructure help at the Arlington Heights property, but that’s about it.

“When it comes to the Bears. I don’t know if folks want us to make that a top priority,” Welch said.

Welch said some of the focus this session will be to address rising home insurance rates and property taxes.

And while he says Mayor Johnson and his team have gotten better at communicating with legislative leaders, he said they should not wait until April or May to make their requests.