While one key committee oversees the spending of Pritzker's money, another is responsible for collecting millions more from dozens of grassroots activist organizations and influential labor unions. The amendment does not itself change tax rates. I love building businesses here. It also raises the property tax credit from 5 percent to 6 percent, and creates a $100 per-child tax credit for joint filers earning less than $60,000 annually and single filers earning less than $40,000 annually. Donations to the opposition come from some of the state's richest men, Illinois State Board of Elections data show. 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%. Pritzker has said it is middle-income earners who have thus far been more likely to leave the state because, he says, the tax burden is “unfairly” distributed. There’s a heated race on the November ballot in Illinois, and it doesn’t involve any candidates. Instead, the ballot measure would allow the state to enact legislation for a graduated income tax. Everyone who makes $250,000 or less a year would pay the same or less. (WTTW News). 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. Section 1. 1 WIS. CONSTITUTION WISCONSIN CONSTITUTION UPDATED THROUGH APRIL 2008 ELECTION. SEC. They also project the change would make the corporate tax in Illinois at nearly 10.5 percent, the second-highest in the nation. SECTION 6. Once a single filer exceeds $750,000 or joint filers exceed $1 million, the top rate of 7.99 percent will apply at a flat rate to every penny of income. The following rates have been proposed: The catch for millionaires is that all income would be taxed at that 7.95% rate — not just the interval. The senior advocacy group AARP held a news conference earlier this month noting added revenue from the graduated tax could make lawmakers less likely to tax retirement income in order to fill budget gaps. “Say for instance that a farmer has a very good year, they make $280,000, but then they have a terrible year, something out of their control, and they make $40,000,” said Fulks. 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. “We’re talking about employers, and we’re talking about a state that is seeing people flee by the minute,” Druss said. LIMITATIONS ON INCOME TAXATION (a) A tax on or measured by income shall be at a non-graduated rate. The new language would read: The new language would read: It’s important to note that the amendment would not allow for the taxation of retirement income. But outside of payroll, most of the money went to consultants. And that’s going to affect bottom line, wages, and jobs in our state, and we can’t have that right now.”. Proponents of fair elections argue this amendment would negatively impact and stop any effort to combat election fraud, efforts 31 other states have enacted. “This will protect them under both circumstances. For the proposed amendment of Section 3 of Article IX of the Illinois Constitution, YES/NO. Contribution reports from the state elections board show how committees raised money and spent it. Gov. While those against the measure say the increase to the corporate tax rate will hit job creators hard at a time when the pandemic is already making it difficult to remain afloat, proponents note that businesses structured as pass-through entities – such as S corporations, sole proprietors and others who claim business income on personal taxes – will see taxes decrease if they earn less than $250,000 annually in taxable income. Opposition groups also point to June comments from Treasurer Michael Frerichs, a Democrat who has no role in setting tax rates, who said it was “worth a discussion” to consider taxing retirement income on certain brackets. Those in favor of the amendment argue the added revenue could make it easier to fully fund the evidence-based funding formula for K-12 schools, which – years down the line, they say – could alleviate property tax pressures by shifting funding responsibility from local taxes to the state. SECTION 3. For the proposed amendment of Section 3 of Article IX of the Illinois Constitution… "Then on the other side, you have some very, very wealthy special interests who frankly don't seem to want to pay their fair share in taxes.". The new language would read: “The General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the State. Illinois Family Institute Position: Vote NO. You are asked to decide whether the proposed amendment should become a part of the Illinois Constitution. Every law imposing a tax shall state distinctly the purpose to which the revenue shall be applied. Hammond Mayor Thomas McDermott Jr. described the experience as a “fur missile” being launched his way. Wednesday, October 07, 2020 at 02:44 PM | … In 1969, delegates at a convention to rewrite the state constitution considered a graduated system, but ultimately rejected it. Article I, Section 2, Clause 3: . Section 3 would be reworded: “The General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the state. The claim that a so-called "fair tax" would lead to a first-ever tax on retirement income in Illinois has become a focus of the Illinois Policy Institute's lawsuit and has seen pushback from retirees. "It's important to remember people have been fighting for a fair tax for a decade plus," said Jake Lewis, a spokesman for a committee supporting the change. " — 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. Those in favor of the bill, however, say the prohibition on levying multiple income taxes was simply a companion to the requirement for a single flat tax rate. While farmers and business groups such as local chambers of commerce did their part, the people who would be immediately affected by the graduated tax, such as Severinghaus, dominated the campaign. If it receives 60 percent of the vote from those voting on the question, it passes. At any one time there may be no more than one such tax imposed by the State for State purposes on individuals and one … JB Pritzker, who has donated $56.5 million of his personal fortune to the Vote Yes for Fairness ballot initiative committee. View Print Friendly This Article is not qualified or limited by the provisions of Article VII of this Constitution concerning the size of the majorities in the General Assembly necessary to deny or limit the power to tax granted to units of local government. The proposal to put the amendment question on the ballot was approved with support from only Democrats, as was Senate Bill 687, the accompanying legislation to set graduated rates beginning in January 2021, should the amendment pass. The rates would be: Those rates effectively mean anyone earning $250,000 or less will pay the same or lower income tax rates under the graduated structure, while those earning above that amount would pay higher rates. You are asked to decide whether the proposed amendment should become a part of the Illinois Constitution.||For the proposed amendment of Section 3 of Article IX of the Illinois Constitution. Danielle Sanders is a writer and journalist living in Chicago. Opponents of changing the flat tax have said small businesses will take the brunt of the proposed tax hike. 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. Two billionaires account for almost all of each side's total fundraising. For proponents of the measure, the amendment and the rates approved are all about raising more revenue without increasing rates on middle-income earners or making drastic budget cuts to state services, education and public safety. While Severinghaus' donation reflects a skepticism shared by voters statewide, it is pennies compared to the big money behind both campaigns. The amendment does not itself change tax rates. According to Ballotpedia, the income tax amendment — sometimes referred to as the “fair tax” or “tax hike amendment” in media reports — would repeal the state’s constitutional requirement that the state personal income tax be a flat rate across income. Currently, the Illinois Constitution (Section 3, Article IX) is explicit that a tax on income shall be nongraduated. 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. It's not just Illinois billionaires in 'fair' tax fight. 11.1 county seats; 11.2 county government; 11.3 county officers and their compensation; 12 article xi corporations. But opponents continue to point to Frerichs’ comments, although the treasurer has since said he does not support a retirement tax. Opposition, led in large part by the Illinois Chamber of Commerce, has centered on what the tax would do to businesses and what lawmakers might do in the future if voters give them the opportunity to levy taxes on portions of the electorate at any one time, rather than on every taxpayer at once. Bruce Rauner's administration. Except as provided in Section 3.2 of this article, it shall be competent to provide in any charter framed for a county under any provision of this Constitution, or by the amendment of any such charter, for the election of the members of the county board of education of such county and for their qualifications and terms of office. No tax shall be levied except in accordance with law. 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.”. Check out the Herald and Review's most-read stories from the past week. The voter is then asked: "For the proposed amendment of Section 3 of Article IX of the Illinois Constitution," and given the option of "Yes/Si" or "No." You have permission to edit this article. I don't actually have a philosophical problem with it," Severinghaus said. 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. 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. It failed to … 2.) Proponents, with backing from the governor, say it’s the fairest way to get Illinois some badly needed revenue. How each side raised the remaining 4% reveals the institutional forces trying to shape public opinion through the two aggressive and expensive campaigns. That’s according to a report by the left-leaning Washington D.C.-based Institute on Taxation and Economic Policy. The rates would go from a flat tax of 4.95% to a graduated structure. 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. “Illinois is in a fiscal hole and we need revenue to get out of it, and we believe that revenue should come from those who have it and afford it, and take the burden off lower and middle income Illinoisans,” said Quentin Fulks, executive director of the political committee Vote Yes For Fairness. 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.”. Taxes. Gov. This is not going to hurt small businesses.”. Contributing organizations have two things in common, said Lewis, spokesman for Vote Yes for Fair Tax. 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