Illinois Lawmakers Pave Way For Higher Taxes On Richest, Send Plan to Voters
House of Representatives voted to approve a constitutional amendment that would allow for higher tax rates on the top earners.
(Bloomberg) -- Illinois lawmakers paved the way for higher taxes on the state’s richest residents, approving a constitutional amendment to do away with the flat income tax that will go before voters during next year’s presidential election.
The state’s House of Representatives on Monday voted to approve a constitutional amendment that would allow for higher tax rates on the top earners, the centerpiece of Governor J.B. Pritzker’s plan to stabilize the worst-rated state’s finances. The state Senate already passed the measure, leaving it poised to go on the November 2020 ballot for voter approval.
“This is reform,” said Robert Martwick, a Democrat and sponsor of the bill in the House, during a debate of the constitutional amendment on Monday. He said the change would help end recurring deficits in the state. “This is the solution for Illinois going forward.”
Pritzker, a billionaire Democrat, has proposed higher levies on those making more than $250,000. His plan would raise more than $3 billion annually and leave rates lower or unchanged for 97% of residents, according to his administration.
The revenue is sorely needed as Illinois grapples with chronic budget deficits, $7 billion of unpaid bills and state pensions that are short $134 billion. Those financial pressures have pushed its credit rating to one level above junk, the lowest of all U.S. states, but the government’s bonds have rallied amid optimism about the Democratic governor’s plans.
Pritzker, who took office in January, has advocated for what he has called a “fair tax,” echoing rhetoric from fellow Democrats who are campaigning for the party’s 2020 presidential nomination and seeking to tap into public anger over income inequality.
House Minority Leader Jim Durkin, a Republican, blamed the Democrats, who control the legislature, for the state’s fiscal woes.
“Here’s my advice to the House Democrats today: take responsibility for this mess before you ask more of its citizens,” Durkin said before the vote.
To contact the reporters on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net;Amanda Albright in New York at aalbright4@bloomberg.net
To contact the editors responsible for this story: Shannon D. Harrington at sharrington6@bloomberg.net, William Selway, Sebastian Tong
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