Pritzker reveals specifics on progressive tax proposal - WSIL-TV 3 Southern Illinois

Pritzker reveals specifics on progressive tax proposal

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WSIL -- Gov. J.B. Pritzker campaigned on a graduated income tax where you pay a larger share of your income the more money you make.

He never discussed how the tax rates would look, though, until now.

"In the weeks ahead, we're looking forward to discussing and debating this proposal with members of the General Assembly on both sides of the aisle," Pritzker said. "I respect the right of opponents to disagree with this proposal, but they should do so in good faith with a specific counter proposal, not 'pie in the sky.'"

Pritzker says 97 percent of taxpayers will see their taxes drop under his new tax plan.

That's anyone making less than $250,000 a year.

Anyone making more than that, will see an increase of at least 63 percent compared to their current rate.

There are six different tax brackets under Pritzker's proposal.

The lowest would tax income up to $10,000 at a rate of 4.75%. Income between $10,001 and $100,000 would be taxed at 4.9%. Income between $100,001 and $250,000 would be taxed at 4.95 percent.

The current rate is 4.95 percent.

Income between $250,001 and $500,000 would be taxed at 7.75 percent and income between $500,001 and $1,000,000 would be taxed at 7.85%.

Anyone making more than $1,000,000 would be taxed at a flat rate instead of a marginal rate, meaning they would pay a 7.95% income tax rate on all of their income.

"Instituting a fair tax as I've proposed will improve the arc of our state's finances forever and make our system more fair for everyone," Pritzker said.

Aside from changing the tax structure, Pritzker's proposal also includes a increase in the state's property tax credit to give some relief to property owners. It would also raise the corporate income tax rate from seven percent to just under 8 percent.  

Pritzker said his plan will bring in an additional $3.4 billion.

"I'm telling you that I'm committed to stabilizing this budget, to making sure that we get rid of the deficits that exist for the state of Illinois, and frankly, very strong foundation for people to build on in our state."

The plan requires a change in the state constitution.

Every Republican has come out against the proposal, but Democrats have the three-fifths majority required in both houses to place it on the ballot in 2020 and then voters would decide.

State Rep. Patrick Windhorst, (R) Metropolis, said he doesn't trust Pritzker and the Democrats in power to keep their promise to working class families.

"This is a bait, and I believe soon they will switch and raise taxes on the middle class," Windhorst said.

Pritzker said his proposal is just the beginning of negotiations, but he also said Republicans that disagree with his plans need to come up with a concrete proposal to reduce the state's budget deficit.

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