Unfortunately, Article IX, Section 3 of the Illinois Constitution mandates that the state income tax be imposed at one flat rate across all levels of income. They’ll be able to vote “yes” or “no,” and the amendment has two paths to passage. What's not yet clear is who will win. Opponents also take issue with the amendment’s removal of language which states “there may be no more than one such tax imposed by the State for State purposes on individuals and one such tax so imposed on corporations,” claiming the removal of the language allows for tax bills such as “education surcharges” or other such fees on top of the regular income tax. Under the new tax structure, only the top 3% of Illinois income earners would pay more in income taxes. PROPOSED AMENDMENT TO SECTION 3 OF ARTICLE IX OF THE ILLINOIS CONSTITUTION That will be submitted to the voters November 3, 2020 This pamphlet includes Opponents believe the amendment gives lawmakers a blank check to come back and raise taxes more in the future. It gives the State the ability to impose higher tax rates on those with higher income levels and lower income tax rates on those with middle or lower income levels. They want an Illinois' tax system "more fair for working people," and new investments in education, health care and social services to restore the devastating cuts from the 2015-2017 budget impasse under Republican Gov. Other than a $250 contribution from a Chicago lawyer in February, the committee's money comes from Pritzker's $51.5 million, donated in June. — 3 — Illinois is among a minority of states that do not utilize graduated tax rates because the Illinois Constitution requires a "flat tax" that penalizes middle-class and working people and benefits higher income individuals. When Illinois voters head to the polls on Nov. 3, 2020, they will vote on an amendment to the Illinois Constitution which would allow state lawmakers to impose a graduated income tax. While the graduated tax would make it possible to implement taxes on high-earning retirees without taxing all retirees, Pritzker has said he and Democrats in the General Assembly oppose taxing any retirement income, and the idea remains widely unpopular in Illinois – one of 12 states that do not tax retirement income. Specifically, Article 9, Section 3 of the Illinois Constitution would be amended if the ballot question passes. The new language would read: The new language would read: Allowing for a graduated tax renders the language moot, they argue. Saying the Fair Tax amendment is controversial is akin to calling Tom Brady a pretty good quarterback. They also note both graduated tax measures are devoid of any meaningful immediate property tax reforms. The following ranks, and only these ranks, of the academic staff as defined in Article IX, Section 4a, are subject to the provisions of Article X, Section 1: professor, associate professor, and assistant professor. Note: This report was originally published on March 11, 2019, based on the information in Governor J.B. Pritzker’s “Fair Tax for Illinois” presentation, delivered on March 7, 2019.The report has been updated to reflect the rates as adopted in Public Act 101-0008, which will take effect if a constitutional amendment is approved by voters on Election Day allowing a graduated-rate income tax. How each side raised the remaining 4% reveals the institutional forces trying to shape public opinion through the two aggressive and expensive campaigns. DECLARATION OF RIGHTS. At any one time there may be no more than one such tax imposed by the State for State purposes on individuals and one such tax so imposed on corporations. Follow Paris Schutz on Twitter: @paschutz, More voter resources: 2020 Voter Guide to the General Election. In any such tax imposed upon corporations the highest rate shall not exceed the highest rate imposed on individuals by more than a ratio of 8 to 5.” 2. After Pritzker, a 55-year-old businessman worth $3.4 billion, was elected governor in November 2018, his campaign didn't disappear. The Illinois Farm Bureau was involved as far back as 1968 in discussions to oppose a graduated income tax structure, said Kevin Semlow, director of state legislation for the organization made up of farmers statewide. (Source: Illinois Constitution.) impose higher tax rates on those with higher income levels and lower tax rates on those with middle or lower income levels. You can cancel at any time. The other is Kenneth Griffin – Illinois’ wealthiest person, founder of the hedge fund Citadel and former major donor to former Republican Gov. But opponents continue to point to Frerichs’ comments, although the treasurer has since said he does not support a retirement tax. Over 95% of small businesses earn $250,000 or less a year in profits, and their owners will not see a … 16.1 illinois central railroad; 16.2 minority representation. On November 3, we need to vote "Yes" to support the constitutional amendment from its current fixed rate to a graduated tax rate which would a… Letters LETTER: Schools should be leading by example It gives the State the ability to impose higher tax rates on those with higher income levels and lower tax rates on those with middle or lower income levels. Tax imposed only by law; statement of purpose. I don't actually have a philosophical problem with it," Severinghaus said. But there does come a time where you say, 'Does it make sense to continue to live here versus Texas or Florida or any number of states that have lower or no income tax?". The biggest contribution came from Griffin, the state's wealthiest man, who gave to the campaign as of Sept. 30. "This was a clear issue for our members that was very important. For all other earners, the previous brackets apply. At any one time there may be no more than one such tax imposed by the State for State purposes on individuals and one … "This isn't about what I would be paying next year. Illinoisans will be asked whether or not to change the state’s income tax system from a flat tax to a graduated tax, where those with higher incomes pay more than those with lower incomes. Sign up for our morning newsletter to get all of our stories delivered to your mailbox each weekday. The debate goes as far back as the 1930s, when the state Supreme Court rejected a graduated tax, the Associated Press reports. “They wanted us to trust them, and on the tax hike that they’re proposing, we won’t be voting on those tax rates,” said Lissa Druss, spokesperson for the political committee Stop the Proposed Tax Hike Amendment. In estimates released before the COVID-19 pandemic, the governor’s office said the graduated tax is expected to bring in about $1.2 billion for the current fiscal year as it would be in place for only part of it, and $3.4 billion once it is in place for a full year. The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the "flat tax," that requires all taxes on income to be at the same rate. In any such tax imposed upon corporations the rate shall not exceed the rate imposed on individuals by more than a ratio of 8 to 5.”. Other Constitutional provisions regarding taxes. {{start_at_rate}} {{format_dollars}} {{start_price}} {{format_cents}} {{term}}, {{promotional_format_dollars}}{{promotional_price}}{{promotional_format_cents}} {{term}}, Georgia update: Warnock makes history with Senate win as Dems near majority, according to the personal finance website Wallethub, ICYMI: Here are the Herald & Review's most-read stories from the past week, Listen now: CapitolCast podcast on COVID-19 levels and early voting in 2020, Watch now: Pritzker blames President Trump and his allies for coronavirus spike in Illinois, Watch now: Indiana mayor 'mauled' by K-9 for police training exercise, Watch now: Illinois gets first shipment of COVID vaccine, Watch now: Gov. Total vote, 3,047,822. 47. If they made over $250,000, they’d have to pay a percentage at a higher tax rate on income over $250,000, but also if they made less then that, it would protect them. Two billionaires account for almost all of each side's total fundraising. That would push the current tax rate to about 6 percent, and would require a simple majority vote in a Legislature dominated by Democrats with or without the passage of the amendment. The new rate structure would create six tax brackets, with rates applying to margins of taxable income instead of every penny of an earner’s income, except for those in the top bracket. (WTTW News). But Severinghaus said paying more isn't his problem with what supporters call the "fair tax," which would allow lawmakers to scrap Illinois' existing flat-rate system and tax Illinoisans who earn more than $250,000 annually at a higher rate. Danielle Sanders is a writer and journalist living in Chicago. A simple majority vote from both chambers in the General Assembly and a signature from the governor is all that is needed to raise rates currently, and that would remain the case with the passage of the amendment. Proponents of fair elections argue this amendment would negatively impact and stop any effort to combat election fraud, efforts 31 other states have enacted. Approval would amend Section 3 of Article IX of the Illinois Constitution. You are asked to decide whether the proposed amendment should become a part of the Illinois Constitution. See the video: Get up-to-the-minute news sent straight to your device. The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the “flat tax,” that requires all taxes on income to be at the same rate. Strictly speaking, the amendment removes a provision from the Illinois Constitution that requires any income tax to be levied at a flat rate on any level of income – the current rate is 4.95%. Gov. For the proposed amendment of Section 3 of Article IX of the Illinois Constitution… In an ongoing series of editorials, we have outlined why Illinois voters should vote no. The measure also raises the corporate tax rate to 7.99 percent from 7 percent and does not change the Corporate Property Replacement tax of 1.5 to 2.5 percent which already exists in current law. But even before the pandemic, Pritzker pegged Illinois’ structural, year-after-year budget deficit at $3.2 billion, and he has framed the graduated tax debate as a choice between 15 percent across-the-board cuts to state government, a 20 percent flat tax hike or passage of the graduated rates. The Illinois State Senate voted to approve putting a constitutional amendment on the November 2020 ballot. Grassroots Collaborative, a nonprofit coalition of 11 groups that focus on community organizing, social justice and labor rights, among other issues, AFSCME Illinois Council No. The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the "flat tax," that requires all taxes on income to be at the same rate. 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