At the opposite end, rates would max out at 6.95% on annual income above $500,000 for individuals and $1 million for couples who file jointly. That’s lower than the maximum 7.95% rate in Pritzker’s plan.
The changes would mean that, while the plan would help middle-class and working families while hitting the wealthy, overall it would be revenue neutral. Unlike the defeated “fair tax,” this revised plan would raise only as much money for the state treasury as the current flat tax does, not more.
Even if approved by legislators, the changes could not be enacted unless voters separately approve a constitutional amendment dropping the current ban on a graduated tax. Martwick is working on a separate enabling measure that would put the matter back in front of voters.
As he did in previewing his legislation several weeks ago, Martwick in a phone interview said he’s hoping spark a conversation about proper state tax policy.
So far, Martwick’s new bill is stuck in the Senate Committee on Assignments, and it’s not clear whether Senate President Don Harmon, D-Oak Park, will allow the measure to be referred to another committee in which it could receive a hearing. Nor is there any sign Pritzker is willing to expend more political capital on the issue.
But Martwick said the situation in Springfield is fluid. He specifically pointed to a separate proposal from the Civic Committee of the Commercial Club to impose a 0.5% surcharge on the individual income tax rate for the next 10 years to pay off Illinois pension debt, something the committee says would save $40 billion in the long run and finally stabilize state finances.
Perhaps the two plans could somehow be merged in a compromise plan, Martwick suggested.
Civic Committee President Derek Douglas, who was not immediately available for comment, has been meeting with key lawmakers in Springfield in an effort to sell his plan.
via “Illinois Politics” – Google News https://ift.tt/4HabF16
February 22, 2023 at 04:15PM