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IL Graduated Income Tax Plan Launched

Tue, 25 Mar 2014 15:12:27 CDT
By: AP

An Illinois lawmaker has announced details of a proposed graduated income tax in which higher earners would pay a larger percentage of their income than the less well-off.
State Sen. Don Harmon's proposal comes on the eve of Gov. Pat Quinn's budget address. Lawmakers face a $1.6 billion loss in revenue next year if they allow Illinois' temporary income tax increase to roll back. The rate for individuals is scheduled to drop from 5 percent to 3.75 percent in January. The Oak Park Democrat's plan would tax the first $12,500 of a resident's income at 2.9 percent. Income between $12,500 and $180,000 would be taxed at 4.9 percent. Income earned above $180,000 would be taxed at 6.9 percent. The federal government and 34 states use a graduated tax.

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