Illinois politicians are already talking about taxing retirees, adding “surcharges” and city income taxes if they can convince voters to abandon the Illinois Constitution’s flat tax protection and give lawmakers greater taxing power.
“At first glance, [a progressive income tax] seems like maybe it wouldn’t be bad, until you read more. Every state that is adopting this kind of structure is taxing retirement income. That’s a killer for me."
The progressive tax amendment on the ballot Nov. 3 removes the constitutional prohibition on multiple taxation, in addition to removing the flat tax protection.
Pritzker has been pushing hard for a progressive income tax amendment as a way to generate $3.7 billion for state spending.
Chicago leaders have been unable to finish developing valuable land after 23 years and $331 million in taxes, but convinced state leaders more time and money were needed.
Income taxes rose 32% for individuals and 33% for corporations in 2017, raising Illinois’ total tax burden to at least sixth highest from 10th highest. More than $1.2 billion went to pensions and debt.
Gov. J.B. Pritzker and Illinois lawmakers agree that when taxes are too high, not even a casino in the heart of Chicago can make money.
Passing the progressive tax would empower state lawmakers to go after seniors’ retirement income.
Illinois could be the next state to tax retirement income if voters approve the progressive income tax in November.
In more than half of progressive tax states, the middle class pays the maximum state income tax rate.
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How fair is it that some of the highest-paid state employees in the nation are getting a raise that must be funded by an economically wounded bunch of taxpayers?
The city has suffered significant revenue losses as a result of COVID-19 restrictions. Pensions will further damage city services even as the pandemic fades.
Illinois Treasurer Michael Frerichs said a progressive state income tax will open the door to taxing retirement income.