[Illinois Policy] State lawmakers are rushing a first-in-the-world wealth tax on billionaires. They also want taxes on streaming services such as Netflix and Spotify and steep surcharges on concerts and ticketed events.
Illinois House Democrats introduced a $1.5 billion transit funding plan with a wealth tax on hypothetical income that doesn’t exist anywhere in the world. Taxes on streaming services and ticketed events are also a part of the plan.
A 4.95% tax on unrealized capital gains for individuals with more than $1 billion in assets.
A 7% amusement tax on streaming services such as Netflix and Spotify.
Increasing the sales tax in Cook County on certain food items by 0.25 percentage points.
A $5 surcharge on tickets for large concerts and performances.
Expanded speed camera enforcement in suburban areas to generate additional transit funding.
Illinois would be the first in the world to tax wealth based on unrealized capital gains. Billionaires can leave the state far more easily than others can. When they leave, Illinois loses out on their income, property and sales tax dollars. As the tax base shrinks, the state would need to make up for that lost revenue, and less wealthy Illinoisans will be the only ones left to tax.
There’s no stopping lawmakers from lowering the threshold at which it kicks in in the future. What starts with billionaires opens the door to taxing others next. Even Gov. J.B. Pritzker doesn’t support the proposal.
Other states considering 'wealth tax' are Hawaii, Maryland, California, New York, Connecticut, Washington, and Minnesota. |