Coffey Says No to New State Taxes

State Representative Mike Coffey is voicing strong opposition to renewed discussions in Springfield about potential tax increases, warning that lawmakers appear to be revisiting ideas Illinois voters have already rejected.

In a recent post, Coffey pointed directly to the 2020 statewide vote on the proposed progressive income tax amendment. The measure, which would have changed Illinois’ constitution to allow a graduated income tax structure, failed at the ballot box by a significant margin. Approximately 55 percent of voters opposed the amendment, keeping Illinois’ flat tax requirement in place.

Coffey said the message from voters in 2020 was clear and should remain the guiding principle for lawmakers. “A few years ago, Illinois voters rejected a constitutional amendment that would allow for a progressive state income tax scheme,” he wrote. “Here we are again with Illinois Democrats looking for new tax hikes despite voters saying NO to taxing retirement income!”

He expanded on that message further, stating, “The Illinois Democrats are aiming to tax retirement income with a progressive tax structure so they can continue their reckless spending. Illinoisans already undertake the nation’s highest state and local tax burden and taxing retirement funds is a terrible idea. Session begins next month, and I will continue to fight back against bad policies that penalize taxpayers.”

Illinois currently has a constitutionally mandated flat income tax, and it remains one of a small number of states that fully exempts retirement income, including pensions and Social Security, from state taxation. At the same time, the state consistently ranks near the top nationally for combined state and local tax burden, driven largely by property taxes, which are set at the local level. Lawmakers from both parties have acknowledged that Illinois faces long-term fiscal pressures tied to pension obligations, infrastructure needs, and funding for education and social services.

Democratic lawmakers, however, argue that discussions about revenue should be viewed in the broader context of maintaining essential public services and meeting legally required obligations. Democrats have long contended that Illinois’ flat tax structure places a heavier relative burden on middle- and lower-income residents, while limiting the state’s ability to adjust revenues during economic downturns. They also note that voters rejected a constitutional amendment in 2020, not a specific tax increase, and that any future changes to the tax code would still require legislative approval and, in some cases, voter input.

Democrats have also emphasized that Illinois currently does not tax retirement income and that no change can occur without formal action by the General Assembly. Party leaders have repeatedly stated that their focus remains on fiscal stability, paying down long-term liabilities, and avoiding cuts to education, public safety, and health care programs relied upon by residents across the state.

Coffey said he plans to make taxpayer protection a priority heading into the upcoming legislative session, emphasizing that voters have already made their position on the issue unmistakable and that lawmakers should respect the outcome of the 2020 election.