ILLINOIS STATE SENATE DISTRICT 40: Fair tax package passes the Senate
Illinois State Senate District 40 issued the following announcement on May 1.
After decades of work to implement a fair tax in Illinois, the Senate passed a package of proposals this afternoon that represents the largest change to the tax code in Illinois in decades.
“We simply cannot afford to continue careening from crisis to crisis, solving our budget woes with short-term band-aids that only further burden middle and working-class Illinois families,” Hutchinson said.
Hutchinson is the lead sponsor of Senate Bill 687, which would set a graduated rate structure for Illinois’ income tax system, with lower-income families paying less while wealthier individuals would pay more. Under the plan, those making less than $250,000 would pay the same or less in income taxes, representing 97 percent of Illinois taxpayers.
Senate Bill 687 would also create a child tax credit worth $100 per child, increase the property tax credit by 20 percent and increase funding received by local governments that helps reduce the burden on property owners.
Before going into effect, voters would have to approve the plan, as Illinois’ Constitution currently mandates a flat tax, where all taxpayers pay the same rate regardless of their income or ability to pay.
Senator Don Harmon (D-Oak Park) advanced a constitutional amendment that would remove the language requiring a flat tax if passed by the Illinois House and approved by voters.
Also passing the Senate this afternoon was Senate Bill 690, which would create a property tax freeze for homeowners.
“In the absence of this plan, we can raise taxes on every Illinois family or slash an additional 15 percent of funding to our public schools, colleges and public safety programs. There are no other options or budget gimmicks. We must act,” Hutchinson said.
Senate Joint Constitutional Amendment 1 and Senate Bills 687 and 690 all passed the Senate this afternoon and will now head to the Illinois House for further debate.
Original source can be found here.