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

This week’s top R&B tracks

weeknd

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

in Music

TOP 10: Countdown the hottest songs this week

25-overlay

The top 10 songs from the Billboard Hot 100 chart for the week ending July 4.

in Entertainment

See what’s new on Netflix this month

17-overlay6

Are you over fireworks and cookouts? Stay inside and binge on these movies and shows that are now showing on Netflix.

in Entertainment, Sports

Mayweather, Pacquiao, Perry among the ‘best paid’ celebrities

maypac

Musicians and athletes dominate the world's highest-paid celebs, according to the latest rankings.

in Entertainment, National

Celebrate safely with these fireworks tips

Since Independence Day falls during the work week, members of St. Richard Catholic Church celebrated the holiday on Sunday, June 30, 2013, with a picnic-style outing complete with fireworks that could be seen throughout the northeast Jackson, Miss. neighborhood. The long streamers were recorded in a 13-second time exposure. (AP Photo/Rogelio V. Solis)

Don't be one of the thousands of Americans injured by fireworks on July Fourth. Stay safe and have a happy holiday!