UPDATE: State Proposes ‘Fair Tax’ Plan To Generate $3.4 Billion Income Tax Revenue
Gov. JB Pritzker on Thursday (March 7, 2019) unveiled a “fair tax plan” the state believes would raise $3.4 billion in tax revenue.
According to a state of Illinois news release, the plan “ensures 97 percent of taxpayers get tax relief and the wealthy pay their fair share.”
Pritzker said the tax is necessary to put Illinois “on course toward firm fiscal footing.”
According to a study by the state Comptroller’s Office, Illinois faces a $3.2 billion budget deficit next year and owes nearly $10 billion of additional late payment debt.
“I don’t know anyone in Illinois that thinks we can any longer just whistle past the graveyard and ignore the fiscal challenges we face,” Pritzker said.
Presently, Illinois residents are taxed at 4.95 percent.
Under the plan, residents making more than $250,000 a year will pay the same or less than what they’re paying today, the news release said. Those earning $1 million and up would be taxed at 7.95 percent of their total income.
- Click the following link for the state of Illinois’ Fair Tax Calculator at www.illinois.gov/
Critics of the plan contend that some lower-income families still would pay more in income taxes, the proposal would not generate as much revenue as predicted, would deter investment and negatively impact statewide job growth.
Pritzker said the proposal provides property tax relief, with a $100 million increase in the property tax credit. A single homeowner who makes less than $250,000 will see an increase in his or her property tax write-off of 20 percent.
Presently included in the proposal is a new tax credit of $100 per child for families raising children. Single parents earning less than $40,000 a year would get the full credit, and single parents who earn more than $40,000 will get the credit on a sliding scale up to $80,000, the news release said. Two-income families earning less than $100,000 would get $100 per child.
“In the weeks ahead, we’re looking forward to discussing and debating this proposal with members of the General Assembly on both sides of the aisle,” Pritzker said. “I respect the right of opponents to disagree with this proposal. But they should do so in good faith with a specific counter proposal. Not pie in the sky.”
SOURCE: state of Illinois news release