SPRINGFIELD—Today the House of Representatives debated the new tax rates that would be implemented under a proposed graduated income tax system, replacing Illinois’ flat tax. The rates in SB687 are contingent on SJRCA1 being approved by voters in November of 2020.
SB687 includes a top tax rate of 7.99% for single filers with more than $750,000 in income and couples generating more than $1 million. Any income over $250,000 would use a tax rate of 7.75% and would increase to 7.85% for income over $350,000 for single filers and $500,000 for couples.
State Representative Tom Morrison voted against SB687 and released the following statement:
“We make a grave mistake when we look at Illinois taxes separately. Our residents and businesses look at the total amount of taxation—not just income taxes, but property taxes, and all of the other taxes or surcharges or whatever. It comes out of their pockets ultimately. And these taxes add up.
This proposal would, in fact, make it easier to tax individuals and businesses in a divide and conquer manner. That is why so many are considering a move to another state or already have done so. And as that happens, Illinois loses that revenue, forcing it to raise taxes yet again. I proposed HJRCA34 a few weeks ago, and that would help protect taxpayers by raising the legislative threshold to raise taxes in the future. Without that protection, I understand why my constituents and residents of Illinois are reluctant to trust this General Assembly to avoid coming back to the well for more and more of their tax dollars. We need reforms that would reduce spending and attract more individuals and businesses at every income level and size to the State of Illinois.”