SPRINGFIELD, Ill. — As early voting begins in Illinois, the Pritzker administration is warning of an across-the-board income tax hike if voters don’t approve a graduated tax increase.
Gov. JB Pritzker’s office said Thursday income taxes will increase 20% for all Illinois tax payers — not just high earners.
Opponents of changing the states flat income tax to a graduated tax say it will hurt small business owners, create job loss, and make even more people leave the state.
The governor says it will make the income taxes people pay in the state more fair by having the wealthy take on more of the tax burden. He says 97% of people in the state making $250,000 a year or less, see no change to their tax rate or pay less.
Millions of dollars have come in from both sides to try and influence voters. Weeks ago, the Pritzker threatened huge budget cuts to critical services in the state if the amendment didn’t pass. On Thursday, the lieutenant governor said the state could have a 20% increase in income taxes for everyone if it fails to gain enough support.
If it did go up by 20%, it would move the tax rate from nearly 5% to 6%