SPRINGFIELD, Ill. – In the closing days of this year’s spring legislative session, state Rep. Mark Walker, D-Arlington Heights, backed an effort to establish the Fair Tax income tax rates if Illinois voters support a constitutional referendum in the 2020 General Election to adopt a new income tax structure.
“I’m very pleased the House and the Senate voted on the proposed tax brackets for a graduated income tax,” Walker said. “Our current flat tax system is regressive; it places a greater tax burden on working and middle class families than it does the highest earners in our state. I support these tax rates because they mean tax relief for 95% of my district, including most of our business owners.”
The rates passed by the General Assembly include graduated tax brackets similar to the federal government’s tax structure. Under the new rates, a typical household filing jointly will see the first $10,000 of their income taxed at 4.7%, followed by a 4.90% rate for incomes between $10,000 and $100,000. Income between $100,000 and $250,000 would be taxed at 4.95% – the current flat tax rate. After $250,000, income taxes will rise to 7.75%. Those who make over half a million will see a rate of 7.85%. Net income for an earner who makes over a million will be taxed at 7.99%.
Walker stressed that these rates are not currently in effect and will only become law if voters approve an amendment allowing for a graduated income tax structure. Gov. J.B. Pritzker approved the rate legislation, Senate Bill 687, on Wednesday.
“It’s no question that we need put Illinois back on the right fiscal path, and I believe that investing in our working families by lowering their tax burden is a great way to do that,” Walker said. “While not the answer to all of our financial concerns, a graduated income tax will go a long way to fund critical social services and meet our fiscal obligations.”