* Press release…

Governor JB Pritzker and leading members of the General Assembly announced a major step forward for the fair income tax, as lawmakers introduced language to amend the state’s Constitution, which currently requires that all taxpayers pay the same rate, regardless of their income. Governor Pritzker’s proposed fair income tax would address the state’s multi-billion-dollar budget deficit by raising taxes only on those making more than $250,000, who represent only 3% of taxpayers.

“Working with the General Assembly, my administration is taking an important next step to change our tax system to be more fair to the middle class,” said Governor JB Pritzker. “The action we’re taking today means we are one step closer to giving voters a choice about whether the wealthy will pay more and 97% of families will pay the same or less. I’ve said from the beginning that it doesn’t make sense that I pay the same rate as a teacher or first responder, and today brings us closer making Illinois’ tax system fair.”

The amendment would revise the state’s Constitution as follows:

Current

A tax on or measured by income shall be at a non-graduated rate. At any one time there may be no more than one such tax imposed by the State for State purposes on individuals and one such tax so imposed on corporations. In any such tax imposed upon corporations the rate shall not exceed the rate imposed on individuals by more than a ratio of 8 to 5.

Proposed

The General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the state. In any such tax imposed upon corporations the highest rate shall not exceed the highest rate imposed on individuals by more than a ratio of 8 to 5.

As the constitutional amendment moves forward, Governor Pritzker’s administration is simultaneously continuing negotiations with the General Assembly over the tax rates, which would ensure that only those making more than $250,000 a year – only 3% of residents – would pay more in taxes. Additionally, the governor has proposed increasing the property tax credit by 20% and creating a child tax credit targeted to working families.

The administration expects that rates will be finalized with lawmakers this legislative session so that Illinoisans can understand how the rates would affect their family before voting on the constitutional amendment. More information is available at www.illinois.gov/FairTaxCalculator.

SJRCA1 Amendment 1 is here.

The plan is to move the proposal forward this week and vote on it in the Senate when they return from spring break.

…Adding… Response…

“Today is the first step by Springfield politicians to hand themselves a blank check with middle class families’ hard earned money,” said Greg Baise, chairman of the anti-graduated tax dark money group Ideas Illinois. “With zero transparency and zero accountability, JB Pritzker and Speaker Madigan are preparing to stick taxpayers with a massive Jobs Tax that will hurt job creators in our state. At the very least, the politicians who are set to support yet another massive tax hike should do the right thing and release their full tax returns so voters have a clear picture.”

* And…

Think Big Illinois Executive Director Quentin Fulks released the following statement on the newly announced language for the fair tax constitutional amendment:

“It’s time for Illinois to have a tax system that works for everyone, not just the wealthy few, and Think Big Illinois applauds the amendment language proposed by Governor Pritzker and Democrats in the legislature today. A fair tax will help address Illinois’ $3.2 billion budget crisis and put our state on the path toward fiscal sustainability, all while lifting the burden off middle and working-class families who are disproportionately hurt under our current unfair tax system.

“This amendment language is an important step toward ensuring Illinois voters have the opportunity to make their voices heard on this critical issue and decide if they want the wealthiest Illinoisans to finally pay their share.

“Think Big Illinois remains committed to being a staunch ally for our working families as we implement a fair tax in our state.”