Tax & AccountingFebruary 22, 2019
Illinois Governor Proposes New Tax Revenues
Illinois Governor Proposes New Tax Revenues
Illinois Gov. J.B. Pritzker’s first budget address proposed new tax revenues that include:
- replacing the flat personal income tax rate with a graduated rate structure;
- legalizing and taxing recreational cannabis;
- legalizing and taxing sports betting; and
- enacting a managed care organization assessment on insurance companies to cover Medicaid costs.
Fair Tax Proposal
Pritzker acknowledged that it will take at least 18 months to implement his graduated income tax or “fair tax” proposal. The governor said he intends to immediately begin negotiations over the proposal with Illinois legislative leaders. The Illinois Constitution requires a flat income tax rate. So, any graduated rate legislation will also need approval by Illinois voters.
Other Tax Options
The governor does not favor other tax options for additional revenue, including:
- sales taxes on services;
- a tax on retirement income; or
- an increase in the current income tax rate by about 20%.
He said these regressive tax options fall disproportionately on the working poor and the middle class.
Subscribers can view the budget address.
2019 Budget Address, Illinois Gov. J.B. Pritzker, February 20, 2019
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