Illinois Senate Approves Income Tax Changes

The Illinois Senate has taken a first step towards setting forth what a graduated income tax could look like.

A set of tax brackets were approved Wednesday and they differ a little from what Governor JB Pritzker has proposed. The top rate is 7.99 percent for wages over $1 million, but the bottom rate stays the same at 4.75 percent.

Democrat Toi Hutchinson says she can’t understand the opposition when almost everyone gets a tax break.

The same Senate bill also includes elimination of the estate tax and a property tax freeze.

Governor Pritzker says the tax plan would stabilize the state's finances and protect the middle class and those striving to get there.

Both state senators representing Effingham County voted No on the measures to change from a flat tax to the graduated tax structure.

State Senator Dale Righter of Mattoon said the measures would "place a costly multi-billion tax increase on the doorsteps of taxpayers across the state." Righter said the plan "doesn't provide long-term, sustainable relief. It is only a short-term solution."

State Senator Jason Plummer of Edwardsville said the constitutional amendment proposal contains no provisions to prevent future rates from being raised. Plummer noted the proposed rates have already changed since first announced by the governor.

One measure approved contains the mechanism to place a Constitutional amendment on the 2020 general election ballot. The other is Senate Bill 687, which puts forth rates tied to the passage of the Constitutional amendment.