No property tax fix, no ‘Pritzker Tax’

Editor’s note: In this series the Tribune Editorial Board offers its closing arguments against a proposed constitutional amendment that would replace Illinois’ flat-rate income tax with graduated rates.

If you voted early, you already know what the proposed Pritzker Tax amendment looks like on the ballot. It’s at the top, and the language is leading, not neutral:

CONSTITUTION BALLOT PROPOSED AMENDMENT TO THE 1970 ILLINOIS CONSTITUTION Explanation of Amendment: The proposed amendment grants the State authority to impose higher income tax rates on higher income levels, which is how the federal government and a majority of other states do it. The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the “flat tax,” that requires all taxes on income to be at the same rate. The amendment does not itself change tax rates. It gives the State the ability to impose higher tax rates on those with higher income levels and lower income tax rates on those with middle or lower income levels. You are asked to decide whether the proposed amendment should become a part of the Illinois Constitution. For the proposed amendment of Section 3 of Article IX of the Illinois Constitution, YES/NO.

In an ongoing series of editorials, we have outlined why Illinois voters should vote no.

You can find our editorials at our website, chicagotribune.com/opinion/ editorials.

Today we introduce Part Four: Why broken promises on property tax relief should encourage voters to say “no” to more taxes.

Pritzker’s tax problems

Gov. J.B. Pritzker had two property tax problems in summer 2019.

Federal authorities were curious about the removal of five toilets from a Pritzker mansion on Chicago’s Gold Coast. That evident effort to render the house uninhabitable, and thus save $330,000 in property taxes, was part of what Cook County’s inspector general had labeled a “scheme to defraud” other taxpayers. Pritzker made good on the tax money. The feds’ investigation apparently continues — as do voters’ memories of the episode.

But the broader issue confronting the governor mid-2019 was taxpayers’ frustration over their runaway property tax bills. Democratic legislators had put the Pritzker Tax constitutional amendment on the November 2020 ballot; if passed, Springfield

would institute graduated income tax rates to lift an additional $3 billion-plus from taxpayers’ pockets.

Most voters look not only at one tax they pay, but at the totality of state and local taxes they pay. And by national comparisons, Illinoisans pay a lot. So Pritzker wanted to soften the threat of this new gouge. Plus, the governor had to placate some Democratic legislators who were nervous about supporting his amendment: How could they justify to constituents voting to enable even more taxation while blocking voters from voting on other reforms, such as pensions, term limits or remap reform?

Pritzker tossed the Democrats a bone: He would offset the income tax grab with a promise of, yes, property tax reform.

Here’s what Pritzker said on Aug. 2, 2019, when he announced formation of his legislative task force to reduce local reliance on property taxes. “Together, we’ll ensure our children receive the quality education they deserve even while we provide more property tax relief for our homeowners and make our system more fair for everyone.”

Here was a double-down quote from state Rep. Sam Yingling, D-Grayslake, who chaired Pritzker’s property tax task force: “Introducing anything less than a substantial overhaul will not be tolerated by the public. This will be a heavy lift, and we’re going to have to make some tough decisions.”

“Substantial overhaul.” “Heavy lift.” “Tough decisions.” Great.

Except nothing happened. The task force flopped. Zero reform. Zero relief — even with Democratic supermajorities in both chambers. Another broken promise.

Property taxes and Illinois Exodus

Eye-popping property taxes aren’t just lowering home values here. Illinois’ total tax burden — income taxes, property taxes, sales taxes, recently hiked gas taxes and all the others — are driving the Illinois Exodus to lower-cost states.

Democrats could blame the coronavirus pandemic for their failure to reform property taxes, but that would be flat-out dishonest. Illinois property taxes have been studied for decades. Reform is a question of willingness, not of finding time.

But now they want to tinker with rates, again, after two hikes in 2011 and 2017 and fundamentally change the Illinois Constitution. We suggest voters, sucker punched with piles of broken promises, send Springfield a clear message: No.