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Springfield, IL-(ENEWSPF)- Speaker Michael J. Madigan released the following statement Thursday regarding House passage of a Fair Tax rates package that the speaker says will provide relief for 97% of Illinois taxpayers.
The bill is SB0687, sponsored by Senators Toi Hutchinson and Elgin R. Sims Jr. in the Illinois Senate. House sponsors are Reps. Michael J. Zalewski, Marcus C. Evans, Jr., and Jaime M. Andrade, Jr.
The rates specifically would be as follows. The current flat tax rate in Illinois is 4.95%, which everyone pays, regardless of income.
Single Filers
| Rate | Income Range |
| 4.75% | $0 – $10,000 |
| 4.90% | $10,001 – $100,000 |
| 4.95% | $100,001 – $250,000 |
| 7.75% | $250,001 – $500,000 |
| 7.85% | $500,001 – $750,000 |
| 7.99% | Over $750,000* |
Married Filing Jointly
| Rate | Income Range |
| 4.75% | $0 – $10,000 |
| 4.90% | $10,001 – $100,000 |
| 4.95% | $100,001 – $250,000 |
| 7.75% | $250,001 – $500,000 |
| 7.85% | $500,001 – $1,000,000 |
| 7.99% | Over $1,000,000* |
*Over this income threshhold all income is taxed at 7.99%.
“The rates set in Thursday’s action start at 4.75% for incomes up to $10,000,” the Associated Press reports. “They jump significantly to 7.75% over $250,000 and top out at 7.99% for single filers earning more than $750,000.”
The rates would take effect in 2021 with voter approval, the AP says.
“The completion of the Fair Tax package ensures the people of Illinois can evaluate the proposal on the basis of facts and hard numbers, not half truths and special interest spin,” Speaker Madigan said. “As we have advocated for several years, the rates passed today are a restatement of our commitment to middle-class families that they will receive a tax cut under this proposal. This vote is a critical step toward House Democrats’ pledge to balance the state budget while holding the line on middle-class taxes and stopping outrageous cuts to critical services like our schools, lifesaving breast cancer screenings, and Meals on Wheels for seniors. Critically, a Fair Tax allows us to accomplish this while also delivering relief for 97% of taxpayers statewide.
“There is more work to be done. While the Fair Tax takes steps to provide homeowners with property tax credits and expanded tax credits for families, House Democrats are going further by creating a Property Tax Relief Fund, because we recognize there is yet more we must do to ease the burden on middle-class families.
“House Democrats look forward to continuing our effort to build a stronger Illinois by building a stronger middle class. We will keep fighting to make taxes fairer for the middle class, strengthen our economy to make Illinois a center of high-wage job opportunities, and make health care more affordable.”
The Fair Tax rates bill is SB687: www.ilga.gov