Republicans in Illinois Senate oppose progressive income tax
Republican Senators at the Illinois statehouse want to block any move to change the state’s constitution for a progressive income tax.
The state constitution requires income to be taxed at a flat rate. Several measures at the statehouse from Democrats would ask voters to change that structure to allow progressive income tax rates.
Senate Republicans, like Sen. Karen McConnaughay, are backing a resolution opposing such a move.
“What could be less predictable than a percentage-based income tax that the General Assembly can adjust every year?” McConnaughay, R-St. Charles, said Tuesday.
Other Republicans said progressive tax rates would hit small businesses that file as individuals hard, hurting job creation. They also worried about the potential for a bate-and-switch where rates across the board progressively increase over time as high income earners flee the state.
“I applaud Sen. [Michael] Connelly, Leader [Bill] Brady and the Senate Republican Caucus for weighing in on this important issue. The Democrats’ progressive income tax is a calculated killer, taking away jobs and opportunity for middle class families," Gov. Bruce Rauner said in a statement. "Emptying the pockets of hard-working Illinoisans isn’t the way to solve our problems. The only real solution is to pass a balanced budget and reforms that will build our economy, grow jobs and create opportunity for all the people of Illinois. Stand with us to say ‘no’ to the progressive income tax.”
State Sen. Melinda Bush, D-Grayslake, said she supports graduated tax rates. She said it’s time to have a conversation about changing Illinois' existing flat tax rate of 4.95 percent – increased from 3.75 percent last summer – to a structure with different rates based on an individual’s income. She said that’s the case in 30 other states.
“Most residents [in states with a progressive tax] are paying less than 4.95 [percent], and a small percentage of people are paying a few percentage points higher,” Bush said. “I think that’s fair.”
While Democratic candidate for governor J.B. Pritzker has called for a progressive income tax in Illinois, he hasn't detailed specific rates or income levels.
Standing alongside his GOP colleagues, state Sen. Chapin Rose, R-Mahomet, said state residents are still dealing with the consequences of the income tax increase last summer.
“I mean, enough is enough,” Rose said. “You’re not even a single fiscal year complete since the Democrats’ tax increase went into effect and they want another one.”
Last summer’s income tax increase from 3.75 percent to 4.95 percent for individuals and 5.25 percent to 7 percent for corporations was done over Gov. Bruce Rauner's veto. Some Republicans did support the override.
Democrats now want to have a conversation about a progressive tax, Bush said. Some suggested that could hurt Illinois' chances of landing Amazon's second headquarters and its thousands of high-paying jobs.
“We know that we have problems in the state of Illinois, but I can tell you we sure won’t fix them if we continue to pass resolutions when the other side has an idea to talk about,” Bush said.
Republicans said they’ve got ideas to fix Illinois’ problems, like reforms to lower workers compensation costs and the state’s second-highest-in-the-nation property taxes, but those have fallen on deaf ears.
House Republicans made a stronger show of force last week, effectively killing any progressive tax resolution from that chamber, but Senate Republicans don’t have the numbers to kill a Senate effort.
State Sen. Connelly, R-Naperville, said they are trying to get some Democratic support to oppose a progressive income tax.
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