Progressive Tax Moves Out of Senate Committee

Date: April 04, 2014

Senate President Pro Tempore Don Harmon passed out of a subcommittee this week SJRCA 40, a constitutional amendment to bring a progressive tax to Illinois.
Proponents of a progressive tax have stepped up their efforts at the Capitol in light of the variety of tax hike proposals that now face lawmakers. 
Illinois’ constitution calls for a flat tax with a 5 to 8 ratio between the individual income tax and the corporate income tax.  In order to change the flat tax, lawmakers have to pass a constitutional amendment by a supermajority in both chambers and then put the question to the voters on the fall election ballot.
Unfortunately there’s no shortage of ideas on how lawmakers might end up taxing Illinoisans.
In addition to the progressive tax efforts, Speaker Michael Madigan has pushed HJRCA 51, which would place a 3% surcharge on taxpayers who make $1 million or more. And, Governor Pat Quinn is calling for a permanent extension of the income tax increase that was passed in 2011.
NFIB is opposed to all of the above scenarios, calling Madigan’s tax and the progressive tax a hit on small businesses who are trying to succeed despite a lagging Illinois economy.
Below is a comparison chart put together by the Tax Foundation and shows all of the tax plans pending compared with the tax law before the increase in 2011.  The Tax Foundation has done an excellent study on the tax plans and it can be found here http://taxfoundation.org/blog/comparing-all-major-illinois-tax-plans-brief.

Related Content: Small Business News | Illinois

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