graduated income tax

Brian Mackey / NPR Illinois | 91.9 UIS

Most of the Democrats running for governor of Illinois have long since come out in favor of a graduated income tax, where wealthier people pay a higher rate on income above a certain amount. But it wasn’t until Thursday that one candidate said what he thought that amount ought to be.

The concept of a graduated income tax has been embraced by state Sen. Daniel Biss, J.B. Pritzker, Chris Kennedy, and Bob Daiber.

Illinois Issues: Flat Income Tax Vs. Graduated Tax

Aug 28, 2017

Should the current Illinois flat-rate income-tax system be changed as the state attempts to deal with its continuing budget struggles? 


Flickr user Images Money / "Tax" (CC BY 2.0)

All Illinois residents -- no matter how rich, no matter how poor -- pay the same income tax rate. Now a plan is afoot to change that with a constitutional amendment, where the wealthy would pay more.

A pair of Democratic legislators are trying to likewise move Illinois from a flat to a graduated income tax.

Rep. Lou Lang of Skokie says those who are well off need to do more to help the state.

Under his four-tiered plan, anyone making more than a million dollars would pay 9.75 percent, which is more than double today's rate of 3.75 percent.

Graduated Income Tax Proposal Gains Traction

Apr 4, 2014
State of Illinois

Advocates for a graduated income tax are making gains in the Illinois General Assembly. A Senate panel passed it out of committee. That plan appears to be gaining some support in the House, even after a different version of a graduated tax was nixed last week by a committee. Opponents say the proposal is bad for the business climate. Todd Maisch, with the Illinois Chamber of Commerce, points to Illinois' high unemployment rate.  He says individuals and small businesses in a position to create jobs would be taxed out of the market.

Lawmaker Calls For Graduated Income Tax

Mar 26, 2014

Advocates have been moving for months to give Illinois a progressive income tax. Instead of the same flat rate for everyone, those who make more would pay more.

Backers of the plan argue most Illinoisans would get a tax cut.

Senator Don Harmon, a Democrat from Oak Park, says this provides the state a new choice, instead of extending the 2011 income tax hike or making deep cuts to services.

"We can continue an unfair, regressive tax at 5 percent, or we can cut government services, the services upon which folks rely by 20 percent across-the-board," Harmon said.