Governor Ramps Up Efforts to Create Progressive Income Tax Rate for Illinoisans

Governor JB Pritzker is moving ahead with pushing a progressive income tax rate for Illinois.

 

Lawmakers introduced language to amend the state’s Constitution, which currently requires that all taxpayers pay the same rate, regardless of their income. The governor said his proposed income tax would address the state’s multi-billion-dollar budget deficit by raising taxes only on those making more than $250,000, who he says represent only 3% of taxpayers. 
 
“Working with the General Assembly, my administration is taking an important next step to change our tax system to be more fair to the middle class,” said Governor Pritzker. “The action we’re taking today means we are one step closer to giving voters a choice about whether the wealthy will pay more and 97% of families will pay the same or less. I’ve said from the beginning that it doesn’t make sense that I pay the same rate as a teacher or first responder, and today brings us closer making Illinois’ tax system fair.” 
 
The amendment would revise the state’s Constitution as follows:

 

Illinois Constitution Article IX, Section 3(a)
Current	Proposed
A tax on or measured by income shall be at a non-graduated rate. At any one time there may be no more than one such tax imposed by the State for State purposes on individuals and one such tax so imposed on corporations. In any such tax imposed upon corporations the rate shall not exceed the rate imposed on individuals by more than a ratio of 8 to 5.	The General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the state. In any such tax imposed upon corporations the highest rate shall not exceed the highest rate imposed on individuals by more than a ratio of 8 to 5.

 

As efforts continue to get the constitutional amendment on the ballot, Pritzker’s administration is simultaneously continuing negotiations with the General Assembly over the tax rates. Additionally, the governor has proposed increasing the property tax credit by 20% and creating a child tax credit targeted to working families. 

The administration's goal is that rates will be finalized with lawmakers this legislative session so that Illinoisans can understand how the rates would affect their family before voting on the constitutional amendment. More information is available at www.illinois.gov/FairTaxCalculator.

Local State Senator Dale Righter criticized the decision by the Democrat majority to waive the public notice requirements for the measure. 

Senate rules require a six-day waiting period from when a measure is assigned to a committee and when the measure is heard before committee. However, the posting requirement can be waived by a majority vote in the Senate, and that's what happened on Tuesday.

The Senate Executive Committee is expected to hear the constitutional amendment for a progressive tax structure on Wednesday.