Pritzker’s ‘fair tax’ plan endorsed by several metro-east mayors
Gov. J.B. Pritzkers “fair tax” received endorsements from several metro-east mayors Monday.
Pritzker spoke at Belleville City Hall Monday on his proposed graduated income tax that would tax the wealthiest of Illinoisans.
Under the new plan, Pritzker said 97.3 percent of Illinoisans would get “much needed” tax relief, while the remaining 2.7 percent would be taxed at a higher rate.
“A fair tax is about bringing fairness to working families to every corner in the state of Illinois,” Pritzker said. “Too many communities in downstate Illinois have been forgotten. That’s wrong and it’s my job to change that.”
If adopted, the flat tax rate in Illinois would go down to 4.75 percent for those who make $10,000 a year and to 4.9 percent for incomes between $10,000 to $100,000. The current flat tax rate in Illinois is 4.95 percent for all Illinoisans.
The rate stays at 4.95 percent for those who make between $100,000 and $250,000 but goes up to 7.75 percent for individuals who make between $250,000 to $500,000. Those who earn $500,000 to $1 million a year will fall under a 7.85 percent tax rate and anyone making over a million would be taxed 7.95 percent.
Pritzker, a Democrat, estimated the plan will generate $3.4 billion in revenue, which he said the state badly needs to correct Illinois’ $3.2 billion deficit he said was made worse by his predecessor Gov. Bruce Rauner, a Republican.
Most importantly, he said, the people of Illinois in the middle class or working toward it will be treated fairly when it comes to income and property taxes.
“The people of Illinois deserve to be treated fairly,” Pritzker said. “Illinois’ flat tax is unfair to the middle class and those who are striving to get there. People like me should pay more and people like you should play less. Simple.”
The fair tax plan also would tack on a 20 percent increase in property tax credits and a new $100 per child tax credit. Pritzker said those changes, along with the new tax rate, will be a game changer for Illinois families.
“In some cases this deduction will be modest and in some cases, especially in working families with children, it will amount to hundreds of dollars per year,” Pritzker said. “That’s real money that working people can use for an emergency car repair, groceries to feed their kids or child care expenses.”
For Swansea Mayor Mike Leopold, the increase to property tax credits will be a boon for Swansea homeowners.
“A huge component, at least for me, is the much needed property tax relief that will give families across the state some relief on their property taxes,” he said.
Along with Leopold, the other mayors endorsing the tax plan included Belleville Mayor Mark Eckert, Washington Park Mayor Rickie Thomas, Cahokia Mayor Curtis McCall Jr., Fairmount City Mayor Michael Suarez, Millstadt Mayor Michael Todd, Centreville Mayor Marius Jackson, Venice Mayor Tyrone Echols, Leopold and East St. Louis Mayor Emeka Jackson-Hicks.
“The mayors standing with me are here because they know it will make a difference in the live of their residents,” Pritzker said.
Jackson-Hicks said the current flat tax rate in Illinois is unfair to not only to middle class families but also to the people of East St. Louis. She said families who are barely getting by shouldn’t have to pay the same tax rate as higher income earners.
“A single mother with two kids in East St. Louis who works hard to make ends meet should not pay the same tax rate as someone making over $1 million a year,” Jackson-Hicks said “This is about basic fairness. This is about protecting working families and asking those who can afford it to pay their fair share.”
However, switching to a graduated tax from a flat rate would take a constitutional amendment approved by legislature and then by voters. Pritzker hopes the measure will be on the November 2020 ballot, but the plan is staunchly opposed by Illinois Republicans.
A handful of Republicans and one Democrat have signed onto a non-binding resolution opposing the amendment. They are calling the plan a “jobs tax.”
“The progressive income tax is a code phrase for a massive tax increase and that is the last thing Illinois needs right now,” said Rep. David McSweeney, R-Barrington Hills, the resolution’s chief sponsor.
Pritzker said working toward the new tax plan is not only important for the people of Illinois, but also important for the economic health of the state.
“While the fair tax will have a positive impact on most taxpayers it will just as importantly put Illinois on firmer fiscal footing,” he said. “A fair tax would eliminate the budget deficit, balance future budgets and reduce the pension liability.”
This story was originally published March 18, 2019 at 2:32 PM.