Home – IL Gov Proposes Graduated Income Tax

IL Gov Proposes Graduated Income Tax

Making good on a campaign promise, Illinois Gov. J.B. Pritzker (D) has proposed a graduated income tax that he says would generate $3.4 billion in revenue for the state while lowering taxes for 97 percent of its residents.

 

“It’s wrong that I would pay the same tax rate as someone earning $100,000 or, even worse, pay the same tax rate as someone earning $30,000, which is why 33 states and the federal government use lower rates for lower earnings and higher rates for higher earnings,” said Pritzker, a billionaire and an heir to the Hyatt Hotels fortune.

 

All residents of the state are currently taxed at a flat 4.95 percent rate, regardless of how much they earn. Under Pritzker’s proposal, taxes would increase significantly for residents earning over $250,000 a year, with those making $1 million or more being taxed at the rate of 7.95 percent.

 

Before the new tax rates could be enacted, however, three-fifths of each legislative chamber would have to pass a constitutional amendment eliminating the state’s current flat tax requirement, which would then have to be approved by the state’s voters.

 

Republicans said they were united in opposition to the plan. But Democrats hold large enough majorities in both chambers to approve the required constitutional amendment without any GOP support, if they choose to do so. (CHICAGO TRIBUNE)