Gov. JB Pritzker has made adoption of a graduated revenue tax a centerpiece of his administration. Whether it is adopted, the state will scrap the present system the place the identical tax price applies to everybody no matter revenue stage.

Underneath the graduated system — which is utilized by the federal authorities and 32 states with an revenue tax — completely different charges are utilized to completely different ranges of revenue. The best charges apply to the very best incomes. Underneath the speed construction accredited by the Common Meeting, solely individuals making $250,000 or extra a yr would pay extra in revenue taxes. That is 3% of Illinois taxpayers.

Opponents of the graduated tax have aired adverts suggesting that the modification grants “new powers” to the state to tax retirement revenue or that it will likely be simpler to tax retirement revenue sooner or later. Illinois doesn’t presently tax retirement revenue, though it may even with out the modification.

Don Todd, president of the Illinois Alliance for Retried Individuals mentioned opponents have “unfold lies concerning the truthful tax.” He cited an advert that includes a lady who says she is a grandmother who says she will not be capable to afford to dwell in Illinois if the modification passes as a result of it’ll tax her retirement.

Opposition teams have cited feedback made by Treasurer Mike Frerichs final summer season to justify their adverts suggesting retirement revenue may very well be taxed if the modification is accredited. Frerichs instructed a chamber of commerce {that a} graduated tax would permit taxation of very excessive pension incomes. Nevertheless, he has emphasised he doesn’t help taxing retirement revenue and Pritzker additionally opposes it.



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