Political Action - Statewide

 

 

 

Judge Retention 

Thomas Kilbride - 3rd District judge of the Illinois Supreme Court.

 

 

Fair Tax/ Progressive Income Tax 

General Information

• What is the Fair Tax/ Progressive Income Tax?
  • Proposed amendment for the Illinois constitution that gives the state the ability to change income tax rates.
  • Illinois legislature already passed what those rates would be changed to (listed below), adjusting the rate higher for those who make more and lower for those who make less.
• Impact if passed:
  • Reduction of income taxes for 97% of individuals; only individuals/ joint filers making more than $250,000 will see an increase.
  • Curbs Illinois’ budget deficit with estimated $3.6 billion in additional state revenue, $1.435 billion after refunds, local government contributions and contribution to Pension Stabilization fund
  • Reduces state budget gap to $6.2 billion
• Impact if not passed:
  • State budget gap of $7.4 billion
  • FY21 relies on $1.4 billion from new tax plan
  • Funds reserved from the FY21 budget for education, healthcare/ human services, public safety, state and local government, new pension fund, and budget stabilization fund

Rate Changes

• Current income rate for single/ joint filers is 4.95%. New rates would be:
  • 4.75% for single/ joint filers making $0 – 10,000
  • 4.90% for single/ joint filers making $10,000 – 100,000
  • 4.95% for single/ joint filers making $100,000 – 250,000
  • 7.75% for single filers $250,000 – 350,000 and joint filers $250,000 – 500,000
  • 7.85% for single filers $350,000 – 750,000 and joint filers $500,000 – 1 million
  • 7.99% for single filers $750 + and joint filers $1 million +
• Businesses currently pay a rate of 7% corporate income tax, which would change to 7.99%
• Personal Property Replacement Tax would remain the same at 2.5%
• Property Tax Credit for Individuals would increase from 5% to 6%

Resources for More Information

• Ballot language for the amendment: https://www.voteyesforfairness.com/ballot-language
• Fair Tax calculator- check how this tax will affect your taxes: https://www2.illinois.gov/sites/gov/fairtax/Pages/default.aspx
• Fair Tax website: https://www.voteyesforfairness.com/
• State legislation describing rate changes if amendment passed: https://www.ilga.gov/legislation/publicacts/101/101-0008.htm