Jonah Patel
The Illinois Fair Tax, or Amendment 1, was a proposed amendment to the Illinois State Constitution that would have changed the state's income tax system from a flat tax to a graduated income tax. The amendment was on the ballot during the November 3, 2020, election in Illinois and required 60% of the votes on the ballot measure or a simple majority of all votes in the election to pass. However, the referendum did not pass, as it failed to meet either threshold. The no votes outnumbered the yes votes by 53.27% to 46.73%. Since then, voters have approved a new amendment to the Illinois Constitution on November 8, 2022, when voters approved Amendment 1, the Right to Collective Bargaining Measure.
| Characteristics | Values |
|---|---|
| Name of Amendment | Illinois Right to Collective Bargaining Amendment |
| Other Names | Amendment 1, Illinois Fair Tax |
| Type of Amendment | Legislatively referred constitutional amendment |
| Purpose | To change the state income tax system from a flat tax to a graduated income tax |
| Date of Amendment | November 3, 2020 |
| Result | Did not pass |
| Voter Support | 46.73% |
| Opposition | 53.27% |
| Support by Party | Democrats supported the amendment, Republicans opposed it |
| Support by Voters | 67% of respondents to a 2019 poll favored the amendment |
| Support by Media | None |
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What You'll Learn
The Illinois Fair Tax amendment
The term "Fair Tax" is used by proponents of the amendment, who argue that a graduated income tax is more fair than a flat tax. They contend that the current flat tax system protects the wealthy and places an unfair burden on low-income residents. In support of the amendment, Sen. Don Harmon (D-39) stated, "If you’re saying the flat tax is a good idea, you are protecting the uber-rich, not the middle class. Because we can’t raise taxes on anyone without raising taxes on everyone, and that’s a protection for the richest among us." Trisha Crowley, president of the League of Women Voters of Champaign County, also voiced support for the amendment, stating that it could help address the state's fiscal crisis and reduce taxes for working families.
On the other hand, opponents of the amendment argue that a flat tax is more fair because everyone pays the same rate, and tax increases impact everyone uniformly. The Illinois Chamber of Commerce released a statement opposing the amendment, stating that a flat tax "does not promote divisive class warfare rhetoric or purposefully attempt to re-distribute income according to a subjective fairness standard." They also argued that a flat tax requires taxpayers to be vigilant against excessive government spending.
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Illinois Amendment 1
The main point of contention surrounding Amendment 1 is whether it is a workers' rights initiative or a disguised tax referendum. Supporters of the amendment, including State Rep. Lance Yednock (D), argue that it protects worker rights and will attract people to workplaces in Illinois. They claim that it will prevent declines in wages, benefits, training, and safety standards. On the other hand, opponents of the amendment, such as the Illinois Policy Institute, argue that it is a "Trojan horse" that will lead to substantial tax increases for Illinois families and small business owners. They claim that the amendment will allow government unions to override state laws and that it will cost a typical family over $2,100 in additional property taxes within the next four years.
On April 21, 2022, two Chicago Public Schools teachers and two parents filed a lawsuit against the Illinois State Board of Elections, the Illinois Secretary of State, and the Illinois State Comptroller, seeking to remove the amendment from the ballot. The petitioners alleged that the amendment would violate the U.S. Constitution by creating a state-law right to private-sector collective bargaining. Despite this, the amendment remained on the ballot, and Illinois voters passed it in November 2022.
The passage of Illinois Amendment 1 has had, and will continue to have, significant implications for workers' rights and taxation in the state. Supporters of the amendment celebrate the increased protection for workers' rights, while opponents express concern over the potential negative impact on taxes and small businesses.
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The Illinois Right to Collective Bargaining Amendment
The amendment was introduced into the Illinois General Assembly as Senate Joint Resolution 11 (SJR 11) on May 7, 2021. It passed the Illinois Senate with a vote of 49-7 on May 21, 2021, and the Illinois House of Representatives with a vote of 80-30 on May 26, 2021.
While supporters of the amendment frame it as a workers' rights initiative, opponents argue that it is a disguised tax referendum that will cost families additional property taxes. They also argue that the amendment's broad language would allow government unions to override state laws by including contrary provisions in their union contracts.
The Illinois Constitution provides four mechanisms for amending the state constitution: a constitutional convention, a legislative process, a citizen-initiated process, and a convention-referred process. In the case of Amendment 1, the amendment was proposed by the General Assembly and then approved by a majority of voters in the state, following the legislative process for constitutional amendments.
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The graduated income tax amendment
The history of the graduated income tax amendment dates back to the Civil War in 1861 when Congress introduced a flat tax of 3% on annual incomes above $800. The following year, this was replaced with a graduated tax of 3-5% on incomes above $600, which expired in 1872. After the Civil War, farmers in the south and west suffered from low prices for their products and high prices for manufactured goods, leading to the formation of political organizations advocating for reforms such as a graduated income tax. In 1894, Congress enacted a 2% tax on incomes over $4,000, but this was struck down by the Supreme Court.
The proposal for the 16th Amendment arose during the debate over the Payne-Aldrich Tariff Act in 1909, with conservatives initially believing it would not be ratified. However, a coalition of Democrats, progressive Republicans, and other groups ensured its ratification. The amendment was a response to the 1895 Supreme Court case of Pollock v. Farmers' Loan & Trust Co., which had raised concerns about the consolidation of economic power by the wealthiest Americans. Shortly after its ratification, Congress imposed a federal income tax with the Revenue Act of 1913, which was upheld by the Supreme Court in 1916.
The 16th Amendment had a significant impact on the American way of life, allowing the federal government to levy an income tax and facilitating central banking policies. Critics argue that it enables expansive federal government spending.
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Constitutional convention
The process of amending the Illinois Constitution is outlined in Article XIV of the Illinois Constitution. Amendments can be initiated in either house of the General Assembly and must be read in full on three different days in each house before a vote is taken on final passage. For an amendment to be approved, it requires a vote of three-fifths of the members elected to each house of the General Assembly. Once approved, the proposed amendment must be published with explanations at least one month before the vote by the electors. The vote on the amendment takes place on a separate ballot at the next general election, which must occur at least six months after legislative approval. The amendment becomes effective if approved by either three-fifths of those voting on it or a majority of those voting in the election.
In the context of amending the United States Constitution, Article V outlines two methods for proposing and ratifying amendments. The first method, which has been used thus far, involves both the House and Senate proposing a constitutional amendment by a two-thirds vote of the members present. The second method, which has never been used, is for Congress to call a convention for proposing amendments upon the request of two-thirds of the state legislatures. This convention method was threatened by New York and Virginia legislatures in the late 1890s, prompting Congress to act preemptively and propose amendments, including the Bill of Rights and the Twenty-seventh Amendment.
While Illinois has not yet held a constitutional convention, it has been involved in discussions and efforts to call for one. In 2014, Illinois adopted an application by Wolf-PAC, a political action committee, for a convention of states to propose a constitutional amendment addressing campaign finance reform. However, Illinois rescinded its adoption of this application in 2022. Additionally, Illinois was among ten states that, since 2016, have rescinded previous applications to call for a convention to propose amendments.
The process of amending the Illinois Constitution and the considerations surrounding the use of a constitutional convention to propose amendments to the United States Constitution demonstrate the complex and deliberative nature of constitutional reform in the United States.
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Frequently asked questions
No, the Illinois Constitutional Amendment, also known as the Illinois Fair Tax, did not pass in the November 3, 2020 election.
Illinois Amendment 1, also known as the Right to Collective Bargaining Measure, was passed by the Illinois General Assembly in 2021. However, it was opposed by some, who filed a lawsuit against the amendment, and it was not passed in the 2022 election.
Amendments to the Illinois Constitution can be initiated in either house of the General Assembly. Amendments must be read in full on three separate days in each house and reproduced before the vote is taken on final passage. A 60% vote is required in each chamber of the Illinois General Assembly to refer a constitutional amendment to the ballot for voter consideration.
