Referendum offers hope for the rich to pay their fair share, but change isn’t inevitable

The notion of increasing taxes on the wealthiest Illinoisans to pay for statewide property tax relief was approved in a statewide advisory referendum in this month’s election. The idea  – imposing a 3% levy on individual income over $1 million – carried 60% of the vote, the Associated Press said.

Popular support for the nonbinding vote may help legislative efforts to put a constitutional amendment on the 2026 ballot to authorize the new “millionaires tax.”

Former Gov. Pat Quinn, head of the committee advocating the tax on the wealthy, said the referendum’s provisions would provide “the largest property tax relief measure in state history.

“For too long, millionaires have been getting tax breaks, and Illinois homeowners have been getting higher and higher property tax bills,” Quinn said. The change would offer “a chance to reform an unfair upside-down tax code and give long-overdue property tax relief to everyday homeowners across the state.”

The Illinois Department of Revenue showed about 77,000 Illinoisans reporting adjusted gross income of more than $1 million annually in 2021, the most recent year available. IDOR estimates that adding a 3% income tax surcharge to net income over $1 million statewide could result in additional tax revenue of $4.5 billion.

Even more everyday Illinoisans probably support such a move, according to Marc Poulos, Executive Director and Counsel for the union-backed Indiana, Illinois and Iowa Foundation for Fair Contracting.

“Getting 60% of the electorate to vote for a measure without any money behind the message suggests that the message probably has more support than what shows in the numbers,” he told the Labor Paper. “I think it’s a genuinely a widely shared view by the 99% that the wealthy don’t pay their fair share. Not that it’s nefarious. Rather, they have the means to pay someone to make sure they take advantage of the various caveats and loopholes that exist in our system.”

Further, it’s not a partisan issue, Poulos added.

“I think the idea of taxing the rich crosses party lines,” he said. “There are voters on both sides of the aisle that believe the wealthy do not pay their fair share. And the wealthy 1% spans from Oprah Winfrey on the left to [Citadel hedge-fund billionaire] Ken Griffin on the right. So, it’s an issue that would draw support from both sides of aisle, something needed in order to obtain 60% of those voting on the measure or the majority of those voting in the election in order to successfully pass a constitutional amendment.

“Although, make no mistake about it, a measure like this would draw formidable opposition from those in the 1%.”

To become law,  the issue would have to be passed by a supermajority of the legislature and then be put on the ballot as a binding question.

In 2014, lawmakers put a similar advisory referendum on the ballot calling for state millionaires to pay 3% on income exceeding $1 million, with proceeds specifically earmarked for schools. Even more voters – 64% -- backed the idea, but it never went farther. And in 2020, voters rejected Gov. Pritzker’s plan to change Illinois’ Constitution to replace the state’s flat 4.95% income individual income tax rate with a sliding scale that would make higher-income taxpayers pay more.

Quinn voiced some optimism, saying, “It gives us a lot of momentum to work with legislators.” But Poulos –active in the successful effort to pass a Workers Rights Amendment for Illinois –  says it’s hardly a done deal.

“The only way it’s feasible is if someone takes up the cause,” Poulos said. “Maybe starting down the barrel of a $3.1 billion structural budget deficit will get the legislature to take up the cause independently. But typically, that doesn’t happen. More often an interest group pushes for a cause and then funds the operation to get the measure passed. In the case of the fair tax proposal, public sector labor largely pushed for the measure with the financial backing of the Governor, but ultimately failed. With the Workers Rights Amendment, labor again took up the fight, and funded the operation, and with a successful outcome. However, with the recent failed fair-tax campaign, I do not see another tax proposal hitting the ballot for a constitutional amendment any time soon.”

 

Two other statewide ballot questions also passed overwhelmingly:

* 72% of voters approved the in vitro fertilization (IVF) ballot question, which became timely after some conservatives sought to limit the procedure after the U.S. Supreme Court reversed Roe v. Wade, and

* 89% approved protecting election workers following threats.

 

Letter Carriers reach T.A., ratification up in the air

Negotiators with the National Association of Letter Carriers, representing almost 200,000 city mail carriers, have come to a Tentative Agreement on a new contract with the U.S. Postal Service.

However, the proposed deal must be ratified by union members, and though a deadline for the vote-by-mail process wasn’t announced, the settlement has provoked some criticism from the rank and file.

The tentative pact includes 1.3% annual general raises from May of last year through Nov. 7, 2026, plus semi-annual Cost of Living increases. According to NALC President Brian Renfroe, if ratified, the proposal would be the largest general wage increase since 2006,

“After almost 20 months of tireless negotiations, we are pleased to reach a fair agreement that rewards our members for their contributions to the Postal Service and their service to the American people," Renfroe said.

Some letter carriers disagree, apparently expecting more.

Representatives from the union’s bargaining team have met in regional town halls for members in Houston (Oct. 27) San Francisco (Oct. 29), Minneapolis-St. Paul (Oct. 31), and Washington D.C. (Nov. 2), and faced opposition.

“We’re going to be aggressive and pro-active” in campaigning against the small hike, said Twin Cities carrier Aaron Hutchison. “Once everyone saw the numbers, the anger and the upset were almost instantaneous. It’s not hard to organize people when they’re already mad.”

In West Central Illinois, Peoria Letter carrier Vic Murrie, a longtime NALC legislative liaison, said he’s optimistic the Tentative Agreement will be approved.

“I think it will be ratified, “said Murrie, who’s also a delegate to the executive board of the Illinois Association of Letter Carriers.

“There’s been some dissension in the ranks, comparing this to UPS [where the Teamsters last year reached a contract providing an average total wage increase of 48% over the next five years]. But that’s apples and dates.

“Looking objectively, going to arbitration, anything could happen. The next contract will be in two years. It’ll get better.”

But in Chicago, Illinois Association of Letter Carriers National Business Agent Mike Caref said the workers could do better if the pact went to arbitration. The law making USPS independent, rather than a federal department, mandates such neutral arbitration when unions and bosses can’t agree.

Caref, an NALC board member, also may challenge Renfroe for the union leadership next year.

Peoria Starbucks broke the law: NLRB

A three-member National Labor Relations Board panel has ordered Starbucks’ Peoria location at Campustown to stop singling out workers because they support unionizing – including recording alleged rule violations or releasing them in the middle of their shifts – and required the coffee shop to post a notice of workers’ right to organize.

That decision was good news in West Central Illinois at a time when two other related events are also significant on a national scale.

For Peoria, the NLRB’s Lauren McFerren, David Prouty and Gwynne Wilcox ruled that Starbucks unlawfully interfered with union activity, agreeing with Administrative Law Judge Paul Bogas’ decision 16 months ago,.

“We’re happy to see the NLRB continue to stand up for workers and our legal right to organize,” Starbucks barista and union activist Michelle Eisen said in a prepared statement. “At the same time, we’re focused on the future and are proud to be charting a new path with the company.”

In 2022, workers at the Starbucks location on West Main Street were the second Starbucks workers in Illinois to unionize with the Workers United/Service Employees International Union (SEIU). Campustown Starbucks workers went out on a 7½- hour strike on May 14, 2022.

The Labor Board is also requiring Starbucks to make whole a barista for illegally sending her home, removing from company files references to “unlawful written warnings” to two workers, and to cease and desist actions such as those taken by a store manager and regional manager at the Campustown site.

Meanwhile, negotiations between Starbucks and Workers United for a national collective bargaining agreement have been continuing since spring.

“Workers United and Starbucks continue to make progress on the foundation framework,” said Molly Nuñez, a Vice President at BerlinRosen, a political consultant firm. “[The parties] have met at the bargaining table monthly since April and have meetings scheduled for November and December. The goal is still to finish the framework by the end of the year.”

Elsewhere, another NLRB order has found Starbucks liable for back pay for unionized workers at hundreds of stores whose hours were cut without the corporation bargaining about it — and the federal agency wants the coffee chain to pay affected workers for the wages and benefits they would have otherwise earned.

The Board’s General Counsel on Oct. 10 filed a complaint saying that Starbucks made the scheduling changes in late 2022 and early 2023 without consulting the union. Changing pay and schedules generally can’t be altered without negotiating once employees unionize.

“The NLRB recently moved to the complaint stage on a combined case regarding scheduling changes for 8,000 baristas and shift supervisors across 300 stores,” said Molly Nunez, with the BerlinRosen PR firm. “By the estimate of attorneys for Workers United, the NLRB's make-whole remedy on hours alone would cost Starbucks more than $30 million, conservatively.”

Eisen, the Starbucks barista, added, “This complaint is a significant move by the NLRB impacting roughly 8,000 union-represented partners. The board’s complaint backs up the concerns baristas and shift supervisors have shared time and time again regarding understaffing in our stores. We're pleased to see the NLRB take bold action to support working people.”

Starbucks workers’ nationwide organizing campaign started in 2021, and currently, workers at some 500 U.S. Starbucks locations have joined the union since late 2021. For years, baristas have accused the company of conducting an aggressive anti-union response, cutting wages and benefits, closing stores, firing workers and so one to block unionizing. NLRB judges have issued dozens of decisions that Starbucks has violated workers’ rights.