Illinois Gov. JB Pritzker’s office has released data claiming that 99 percent of DeKalb County taxpayers would pay the same or less in income tax under the governor’s proposed graduated income tax system.
The release supplied by Pritzker’s office is based on data from the 2016 tax year. It says 99 percent of county income tax filers – those with taxable income of less than $250,000 a year – would pay the same or less in income tax.
Meanwhile, about 30 tax returns in the county would be subject to the top 7.95 percent rate on taxable income of more than $1 million. The numbers are meant to bolster the argument that the tax burden imposed by Prtizker’s “Fair Tax” plan would fall on those with the greatest ability to pay, while raising about $3.4 billion for state government.
Critics charge there is nothing to protect middle-class Illinoisans from future tax increases. They also say it will make Illinois less competitive with its neighbors and further cripple small business owners and other job creators.
Prtizker also proposes increasing the corporate income tax rate from 7% to 7.9%, which opponents say will make it even more difficult for the state to attract new employers.
Data for neighboring counties shows that about 97 percent of filers in Kane County would pay the same or less, while about 0.1 percent – about 530 tax returns – would pay the top rate. In Ogle County, roughly 99 percent of filers would pay the same or less, while 0.2 percent would pay the top rate. About 98 percent of McHenry County tax filers would pay the same or less, with 0.2 percent paying the top rate.
Cook County would have the highest number of filers paying the top income tax rate, with almost 9,300 returns with taxable income of more than $1 million. That’s still only 0.4 percent of all tax filers, according to the data.
Of the almost 5.7 million tax returns filed statewide for 2016, less than 18,000 millionaires would pay the top rate, while 5.5 million taxpayers — 97% statewide — would pay the same or less in state income taxes, according to the data.
Under Pritzker’s tax proposal, people with less than $10,000 in adjusted gross income would pay a 4.75 percent income tax; those earning $10,000 to $100,000 would pay 4.9%. Those with incomes of $100,000 to $250,000 would pay the current 4.95% rate.
The $250,000 mark is where the numbers jump. Filers with an adjusted gross income of $250,000 to $500,000 would pay 7.75%, those earning $500,000 to $1 million would pay 7.85%, and those who earn $1 million or more pay the top 7.95% rate.
The plan also calls for a $100 per child state tax credit, which would provide a small measure of tax relief to many families, Pritzker has said.
Prtizker, an heir to the Hyatt hotel fortune, has said billionaires like him should be the ones who pay the greatest share of the taxes. He says his proposed changes are the fairest way to help close what is expected to be a budget gap of more than $3 billion next fiscal year, not to mention a backlog of unpaid bills reaching $15 billion.
Democrats have lined up behind the governor’s plan, while all state Republicans, including DeKalb County’s Rep. Jeff Keicher (R-Sycamore) and Deputy Minority Leader Rep. Tom Demmer (R-Dixon), are opposed.
“It seems there is a refusal to address any efficiency or spending reforms in state government,” Keicher said Tuesday at a Springfield news conference. “… The current proposal in no way offers a chance for job creators to see what the landscape looks like going forward. There is no certainty to their level of taxation under the current proposal.”
The Illinois Consitution calls for a flat income tax rate, and changing to a graduated tax would require a constitutional amendment. Three-fifths of state lawmakers would have to approve placing such a measure on the ballot, which would then have to be approved by 60 percent of voters.
If their caucus holds together, Democrats have the numbers in the state House and Senate to place the question on the November 2020 ballot.
The state has a calculator online for individuals to find out how much they would pay under the proposed plan at Illinois.gov/FairTaxCalculator.
01-All No Sub,02-Pol,19-Legal,16-Econ,24-ILGA,26-Delivered
Feeds,News
via Daily Chronicle https://ift.tt/2DnMhiJ
April 3, 2019 at 04:53PM
Illinois Delivered 