About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Jared Walczak & Katherine Loughead, Twelve Things to Know about the "Fair Tax for Illinois" 1 (2020)

handle is hein.taxfoundation/tftwtk0001 and id is 1 raw text is: Twelve Things to Know About the Fair Tax for Illinois FISCAL FACT No. 731 Oct. 2020 Jared Walczak Vice President of State Projects Katherine Loughead Senior Policy Analyst The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and global levels. We are a 501(c(3) nonproft organization. ©2020 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 This report was originally published on March 11, 2019, based on the information in Governor J.B. Pritzker's Fair Tax for Illinois presentation, delivered on March 7, 2019. The report has been updated to reflect the rates as adopted in Public Act 101-0008, which will take effect if a constitutional amendment is approved by voters on Election Day allowing a graduated-rate income tax. Key Findings Illinois Gov. J.B. Pritzker (D) has proposed sweeping changes to Illinois' tax code, advocating a constitutional amendment to permit a graduated-rate income tax and proposing a new rate and bracket structure. In May 2019, the General Assembly passed a joint resolution (SJRCA0001) referring a constitutional amendment to the November ballot that would allow a graduated-rate income tax structure. In June 2019, a law was enacted (Public Act 101-0008) establishing new individual and corporate income tax rates that would take effect on January 1, 2021, should the proposed constitutional amendment be ratified by voters. Under Public Act 101-0008, corporate income would be taxed at 10.49 percent, which would become the second-highest rate in the nation, while pass-through business income would be taxed at a top rate of 9.49 percent, the sixth-highest such rate nationwide. The proposal diverges sharply from ideal-or even typical-income tax structure. It omits inflation indexing (resulting in bracket creep), creates a marriage penalty, and includes a recapture provision which subjects the entirety of a taxpayer's income to the top marginal rate once they reach that bracket. The neighboring states of Indiana, Iowa, Kentucky, and Missouri have all cut income taxes in recent years, while Illinois may be headed in the opposite direction. 202.464.6200 taxfoundation.org

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most