New Illinois Bill Targets Billionaires — Is a Wealth Tax Coming?

Since Illinois lawmakers returned to Springfield last month, it feels like there's been a steady stream of new bills brought to their attention. Some are small.  Others?  Not so much.

We just got word about the proposals for a fire pit tax, mandatory government meetings for high school students, and the banning of tear gas.  Now, billionaires are getting a taste of the world of... taxes.

Read More: Illinois Bill Would Make High Schoolers Attend Government Meeting

One of the more attention-grabbing proposals filed last week has arrived.

New Illinois Bill Targets Billionaires

What's being called a "billionaire wealth tax", the State Senator Karina Villa introduced Senate Bill 3376 to establish a billionaire wealth tax in Illinois, according to a new release from her office.  The goal is to help protect essential services from looming cuts in federal funding.

Right now, Illinois' income tax system primarily focuses on wages - what you earn from a job.  But the release argues that the wealthiest individuals can see massive increases in their overall wealth through asset appreciation without paying income tax on those gains unless they sell the assets.  In other words, if stocks, investments, or other high-value assets skyrocket in value, then that growth isn't taxed the same was a regular paycheck is.

Read More: What a New Illinois Bill Could Mean for Tear Gas and Pepper Spray 

Senate Bill 3376 aims to change that by applying Illinois' personal income tax to the appreciation of billionaires' assets.  Supporters sat it's about addressing inequality and making sure the ultra-wealthy contribute more, especially at a time when the state is bracing for potential federal funding cuts that could impact essential services.