News

Senator Unveils Proposed Details of Graduated Income Tax

Senator Unveils Proposed Details of Graduated Income Tax

Photo: Associated Press

A graduated income tax system would create three tax brackets for Illinois residents.

Under the proposal from State Sen. Don Harmon (D-Oak Park), a 2.9 percent tax would be imposed on all income up to $12,000, followed by a 4.9 percent tax on income between $12,000 and $180,000. Income above that would be charged at 6.9 percent.

Harmon says it’s important to note that those thresholds don’t change how all of your income would be taxed.

“It’s not like you trip over the line and suddenly you have a higher tax rate applied to all of your income,” Harmon said. “The lower tax rates apply to the lower income, no matter who earns it. The higher rates apply only to the higher income earned by those earning in excess of that bracket.”

Harmon claims this would amount to a tax cut to 94 percent of people in the state.

Opponents of the legislation disagree. A statement from Americans for Prosperity Illinois claims Harmon’s plan is essentially a tax hike, because rates for most would be above the 3.75 percent rate that would be in place if the temporary income tax increase is allowed to expire. Harmon, however, is comparing it to the increased rate of 5 percent.

 

Recent Headlines

in Music

New awards, big performances set for Sunday’s AMAs

taylorAMA

Taylor Swift will kick off the American Music Awards on Sunday by performing her chart-topping single “Blank Space” and will…

in Entertainment

This weekend in entertainment history

elvis

A look at the Hollywood headlines that went down in history.

in Music

This week’s top pop songs

taylorswift

LISTEN: This week's top pop songs, according to the latest Billboard chart.

in Music

This week’s top R&B tracks

usher

LISTEN: This week's top R&B tracks, according to the latest Billboard chart.

in Trending, Viral Videos

TODAY’S MUST SEE: Kids react to a realistic Barbie doll

19-overlay3

The Lammily doll wants to show children that average is beautiful.