Although it was ultimately not included in the recently approved Chicago area transit bailout measure, Professor Jason Mazzone told the Cook County Record in late October that the proposed “billionaire’s tax” would face a stiff uphill battle in court.
“The sponsors of the (legislation), which would impose a tax on unrealized gains on assets owned by state residents with net assets exceeding $1 billion in value, contend that the proposed new tax is not a tax on personal property but on income,” Mazzone wrote in an email answer to questions from The Record.
“The Illinois courts will be very skeptical of this claim for the simple reason that a gain on paper, without any money ever being exchanged, does not obviously count as income within the ordinary meaning of the word or in the world of financial management or taxation,” Mazzone said.
“An increase in wealth is quite different from an increase in income. The state constitution distinguishes between the two. Courts will be inclined to keep the line between them sharp.”