This week, Senate Democrats passed a 4-bill package that creates the framework for Governor Pritzker’s graduated income tax proposal, his most desired and highest-stakes policy change.
The package includes four pieces of legislation: a constitutional amendment to remove the current flat tax requirement; a revised graduated income tax plan; a repeal of the Illinois estate tax; and a conditional property tax freeze for school districts. The package is tied together, meaning all of the bills must pass or the estate tax repeal and property tax freeze will not take effect.
If and when this package of bills comes to the House, I will be a NO vote. Illinois is losing population and jobs and we already rank dead last in taxpayer friendliness of all the other 49 states and Washington, D.C.
Here’s a helpful breakdown of the Governor’s tax hike package that passed this week.
GRADUATED INCOME TAX
Senate Bill 687 contains the new graduated income tax rates/brackets, along with the following:
- A 6% property tax credit (up from 5%);
- A $100 child tax credit which is phased out once an individual filer’s income exceeds $80,000 and a married filing jointly income exceeds $100,000; and
- An additional $100 million for the Local Government Distributive Fund (LGDF).
The Senate proposal raises the top income tax rate to 7.99% from 7.95% in Governor’ Pritzker’s proposal and kicks in for individual filers with income over $750,000 and joint filers with income over $1 million. The highest 7.99% tax rate would apply to all income.
Visits in and around the 115th District!
Boys and Girls Club of Carbondale is now Boys and Girls Club of Southern Illinois. They will be expanding to include Mt. Vernon.
WEEK IN REVIEW
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There are several major issues left to be resolved in the remaining weeks ahead of the House’s scheduled May 31 adjournment.
As I discussed in my opening, the House must now deal with the Governor’s proposed Constitutional Amendment to institute a progressive income tax. There is also the matter of addressing the Governor’s proposals to raise taxes on plastic bags, insurance plans, online betting, e-cigarettes, and cigarettes, as well as the issue of whether or not to legalize cannabis for adult recreational use.
There are also rumors that a capital infrastructure plan to rebuild crumbling roads, bridges, schools, and water treatment facilities across the State could be on the horizon. Also, there is the issue of passing a balanced budget that spends more than 36.5 billion dollars.
My office in Mt. Vernon is open Tuesday through Friday and my office in Murphysboro is open Monday through Wednesday and Fridays from 8:30 AM to 4:00 PM. You can also contact me directly through the Contact Form on my website at www.repbryant.com or at email@example.com