Illinois to Consider Changes to Income Tax
Illinois Governor, J.B. Pritzker’s plan, which his administration has titled the “Fair Tax,” is to have six different levels of income tax rates between 4.75% and 7.95%. It is being estimated by the Governor that this plan would generate $3.4 billion.
To that end, the Illinois Senate approved an amendment to allow the state to implement any kind of income tax. The amendment does not specify a rate and it does not specify graduated or non-graduated tax. The language also makes an adjustment to the personal/corporate rate to say that the highest corporate rate shall not exceed the highest rate imposed on individuals by more than a ratio of eight-to-five.
It is expected that the Senate will not take action on the amendment until implementation language establishing the actual income level brackets and tax rates for each level is ready to be acted upon. Farm Bureau assumes that any implementation language will be linked to the voter approval of a constitutional amendment allowing any form of income tax.
Farm Bureau policy supports a flat rate income tax and opposes removing the eight-to-five ratio personal/corporate rate tax limit. Farm Bureau opposes the amendment. Members are encouraged to contact your state senator and representative to voice opposition to this proposal.
To find your contact, go to: https://ova.elections.il.gov/RegistrationLookup.aspx