SPRINGFIELD—State Senator Elgie R. Sims (D-Chicago) supported a constitutional amendment that would allow Illinois to implement a fairer income tax.
Illinois has had the same flat tax structure for decades. The Illinois Constitution currently locks in a flat income tax rate. The proposed plan would lower taxes for 97 percent of Illinoisans and only raise rates for those making more than $250,000.
“Right now, the tax burden rests heavily on low-income, working families,” Sims said. “A cashier at a corner store on Cottage Grove and a futures trader at the Chicago Mercantile Exchange pay the same percentage on their incomes. We have to change that. It has long been time for millionaires and billionaires to pay their fair share.”
Sims has been an advocate for a fair tax for years, acting as a chief co-sponsor of similar legislation while he served in the House. The current flat tax system contributes to the deficit by preventing the revenue growth needed to invest in crucial services, he said.
“A fair tax will provide a sense of stability in Illinois that has not been felt in years,” Sims said. “For far too long the state has careened from crisis to crisis. My district and the people of Illinois deserve a larger investment in education, infrastructure and social services.”
The plan is headed to the House for consideration. If approved there, the constitutional amendment would require voter approval in 2020.
Senate Bill 687, a proposed rate structure also passed the Senate Wednesday.
The Senate Rate Proposal is as follows:
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SENATE RATE PROPOSAL |
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Single Filers |
Married / Joint Filers |
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Rate |
Income Range |
Rate |
Income Range |
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4.75% |
$0 - $10,000 |
4.75% |
$0 - $10,000 |
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4.9% |
$10,000 - $100,000 |
4.9% |
$10,000 - $100,000 |
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4.95% |
$100,000 - $250,000 |
4.95% |
$100,000 - $250,000 |
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7.75% |
$250,001 - $350,000 |
7.75% |
$250,001 - $500,000 |
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7.85% |
$350,001 – $750,000 |
7.85% |
$500,001 - $1,000,000 |
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7.99% |
Over $750,000* |
7.99% |
Over $1,000,000* |
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*If over this income threshold, all income is taxed at 7.99% rate |
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Corporate Rate |
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Current Rate 7.0% |
Adjusted Rate 7.99% |
Applies to all corporate income. |
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