In super speedy voting that took place on Wednesday, Illinois senators have pushed forward a significant proposal that will completely change personal income taxing.
The First Step Towards the Elimination of Flat Tax Rate
The Senat with the Democrat majority voted 40 to 19 in favor of this amendment which will put an end to equal tax requirement, also known as the flat tax. This is the first proposal related to taxes since the original one came into action 50 years ago.
This way, they have opened the door for graduated-rate income tax. This tax will gradually increase with people’s income, meaning that the rich will have to pay higher personal income taxes than the middle class.
J.B. Pritzker, the heir of Hyatt Hotel empire and the governor of Illinois, described this proposal as the highest priority legislative act. The House, where Democrats also outnumber the Republicans, has to give thumbs up to this proposal before voters give their final say in 2020.
Even though the debate on this amendment was shorter than some, the Republicans who oppose it had their voice heard. They expressed their fears that this tax raise would hit middle-class citizens hard. These fears were accompanied by a hope that people would say no to it at voting.
Pritzker, who built his governor campaign on this graduated personal income tax, praised the Senate for endorsing this initiative, describing this decision as a “major step” towards introducing a fair taxing policy. He also emphasized that the higher tax rate will only affect 3% of taxpayers that have an income of $250,000 or higher.
According to this prediction, nothing will change for 97% of tax-paying citizens. There is even a possibility they will pay less for income tax than they do now. However, the Republican opposition strongly disagrees with these notions, claiming that the elimination of flat tax will affect people whose income is under $250,000.
The Republican representative in the Senate, Dale Righter, said that even though some people tend to tackle Government problems by raising tax requirements, this is only going to draw even more money from taxpayers. Democrats will use this graduated income tax to try and eliminate the discrepancy in the state budget of $3.2 billion.
There was an array of other proposals related to taxes that were approved in the Senate without the participation of Republicans. One of them proposes a freeze of taxes on school district properties, provided the state of Illinois fulfills its obligation to this sector. The other one would eliminate taxes imposed on inherited property, also known as “death tax.”