“Now lawmakers must address a multi-billion dollar budget gap without the ability to ask the wealthy to pay their fair share. Voters have rejected the Fair Tax proposal to abolish Illinois' flat-rate income tax for one that would take a greater share from wealthier taxpayers. Option 3: Fair Income Tax Illinois would change its system so the wealthy pay more, like in 33 other in medieval history and the F.S.A. And, of course, regular readers will recall that just last week, I learned that Pritzker’s promise to boost the state’s pension funding by asset transfers, likewise quietly failed. J.B. Pritzker and to his hopes of injecting billions of dollars more revenue into the state budget, Illinois voters rejected a constitutional amendment to overhaul how the state taxes income – a result that portends budget cuts, an overall income tax hike, or a combination of both. That lag time is in part because Illinois allows two weeks for ballots postmarked on or before Nov. 3 to arrive at local election authorities’ mailboxes. The amendment would have supported allowing the state government to impose a graduated-rate income tax structure that would tax different brackets of income at … The amendment on the November 2020 ballot in Illinois proposes a change from a flat tax to a graduated tax. And refusal to reform pensions, treating the future pension accruals as sacrosanct even as other state needs are crowded out by the spending that requires, is not lost on voters, either. Pritzker the first major defeat of his 22-month tenure. Should voters approve the change, the constitution would give state legislators a wider door to set tax rates, such that the General Assembly could “provide by law for the rate or rates of any tax on or measured by income.”. Illinois Fair Tax Amendment. Practicing Poverty Might Help, Why HECM Reverse Mortgage Borrowers Make Mistakes, Biden Plans To Fix Social Security’s Short-Fall In 2034. Joint filers with income above that would face higher marginal tax rates, kicking in at 7.75% on income above $250,001. With 98% of the vote counted, the Chicago Tribune this morning reported that “no” votes exceeded “yes” votes by a margin of 55% to 45%. ), What were the arguments that prevailed against such a powerful headwind as the promises of “free money”? Pritzker’s easy blaming of Republicans and millionaires and billionaires, rather than recognizing that Illinoisans made the only rational choice in a state with such a legacy of mismanagement and without any willingness for reform, certainly indicates that the state has a long way to go. But that figure pales in comparison to the long-term consequences the decision by voters will have on the state’s finances, as well as their own pocketbooks. WTTW - Chicago PBS. Yes, I'm a nerd, and an actuary to boot. Currently, Illinois has a flat tax, which means that all income is taxed at the same rate, currently 5% for people and I think 7% for businesses. The graduated income tax (the Fair Tax) will increase state revenues by asking people in the highest income brackets to pay more while keeping taxes flat – or even reducing the income tax burden – for 97% of the people living in Illinois. The amendment … Illinois is by far the most fiscally mismanaged state in the union. The state’s constitution requires that all income be taxed at a singular, flat rate – it’s currently 4.95%. The proposal, formally titled the "Allow for Graduated Income Tax Amendment", appeared on the ballot in the November 3, 2020 election in Illinois as a legislatively referred constitutional amendment. In advance of the November 2020 ballot question facing Illinois citizens, Ralph Martire will explore Governor J.B. Pritzker’s proposal to amend the Illinois State Constitution. Armed with an M.A. Concurrent with the proposed constitutional amendment, the Illinois legislature passed legislation setting a new set of graduated income tax rates t… Illinois Voters Reject ‘Fair Tax’ Amendment. Meanwhile, at least 97% of Illinois … For example, a single mom making $61,000 would pay an additional $521 in taxes. Per that law (Public Act 101-008), joint filers with incomes of $250,000 or less would see their tax rate decrease slightly or remain at 4.95%. The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the “flat tax,” that requires all taxes on income to be at the same rate. Sign up for our morning newsletter to get all of our stories delivered to your mailbox each weekday. The General Assembly passed a measure last May to enact the graduated tax, if voters approve a constitutional amendment on Nov. 3. How And Why To Create A Compilation Of Your 2020 Trusts Now! But by the next morning, Fulks was out with an updated statement. 2020, in Chicago. Voters will decide whether to replace the current flat tax with a graduated state income tax. You may opt-out by. Video: Arguments for and against a graduated income tax rate. Austin Berg, vice president at the Illinois Policy Institute, made another pitch against the amendment (for instance, here at the Chicago Tribune as well as at various web forums): it would allow the legislature to raise tax rates more easily by dividing up taxpayers, and raising taxes on one tax bracket at a time, ultimately raising everyone’s tax burden but without the political pushback of an all-at-once hike. J.B. Pritzker and to his hopes of injecting billions of dollars more revenue into the state budget, Illinois voters rejected a constitutional amendment to overhaul how the state taxes income – a result that portends budget cuts, an overall income tax hike, or a combination of both. J.B. 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