Big money funds debate on Illinois graduated income tax vote

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—4.75% on the first $10,000 in income;

—4.9% on income from $10,001 to $100,000;

—4.95% on income from $100,001 to $250,000;

—7.75% on $250,001 to $350,000;

—7.85% on $350,001 to $750,000;

—7.99% on all income over $750,000;

Joint filers pay the top rate after hitting the $1 million mark.

The tax on corporations would increase to 7.99%

Proponents say that a flat tax falls heavier on lower incomes than it does on the wealthy. Vote Yes For Fairness cites statistics showing that most taxpayers — those earning $22,000 to $110,000 — pay 12% to 13% of their income in taxes, while the wealthiest, earning more than $537,000, pay 7.4%. With the approved rate structure, the 97% of taxpayers who earn less than $250,000 would pay no more than the current 4.95% rate.

Opponents point out that the rates wouldn’t be enshrined in the constitution, allowing lawmakers to increase taxes at any time. They can do that now, and just did, by 33%, in 2017. But critics say the new structure would make it easier for lawmakers to tinker with different brackets. Raising one rate on all taxpayers is more difficult than hitting just one bracket, they say.

Region: Decatur,News,City: Decatur,Region: Central

via herald-review.com – RSS Results of type article https://ift.tt/2NCrjxk

October 11, 2020 at 09:55AM

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