Testimony: Illinois “Millionaire’s Tax” Would Hurt Small Businesses, Exacerbate Outmigration

Attorney and CPA Chad D. Cummings dissects Illinois’ proposed constitutional amendment that would raise the top marginal individual income tax rate from 4.95 percent to 7.95 percent and push the effective rate on pass-through businesses as high as 9.45 percent. While 23 other states have cut their top income tax rates since 2020 and Illinois’ neighbors continue lowering theirs, Illinois is moving in the opposite direction and attempting to lock the increase into its constitution. This presentation breaks down how this surtax would primarily hit small business owners through pass-through income, accelerate the state’s already heavy outbound migration to Florida, Texas, and other low-tax states, and create even more pressure on the businesses that remain. Learn exactly how redomestication allows Illinois business owners to legally move their company’s domicile to Florida or Texas without creating a new entity, without dissolution, and on a completely tax-free basis while preserving their FEIN, contracts, credit history, and bank accounts. If you own a pass-through business in Illinois, this proposal makes the cost of staying far higher than the cost of acting. Learn more: https://www.cummings.law/redomestication/