CHICAGO (Feb. 27, 2019) – As Illinois Gov. J.B. Pritzker pushes to replace the state’s constitutionally-protected flat income tax with a progressive income tax, the Illinois Policy Institute released a calculator today revealing families making as little as $26,100 would see an income tax hike under the potential structure.

The Institute modeled its calculator after progressive income tax rates in Iowa and Wisconsin, because Gov. Pritzker pointed to them during his Feb. 20 budget address.

Nicknamed the “fair tax” by lawmakers, the analysis reveals the middle class would actually see a substantial tax hike. The numbers don’t add up for Illinois to pay down billions in debt, fund new programs and still cut taxes for the majority of Illinoisans.

Snapshot around the state:

• Illinoisans making as little as $26,100 would see a tax hike under Wisconsin’s progressive income tax rates.
• Meanwhile, Illinoisans making as little as $46,500 would see a tax hike under Iowa’s progressive income tax rates.
• The median Illinois family would pay $610 more under Iowa rates and $516 more under Wisconsin rates.
• Similarly, the typical Cook County family would pay $517 more under Iowa rates and $467 more under Wisconsin rates, while the typical Lake County family would pay $1,419 and $824 more, respectively.
• The typical East Moline family would pay $545 more under Iowa rates and $481 more under Wisconsin rates.
• The typical Madison County family would pay $436 under Iowa rates and $424 more under Wisconsin rates.
• The typical Peoria family would pay $280 more under Iowa rates and $341 more under Wisconsin rates.
• The typical Rockford family would pay $15 more under Iowa rates and $178 more under Wisconsin rates.

Background:

• Sen. Don Harmon filed State Joint Resolution Constitution Amendment 1, which would scrap the state constitution’s flat tax protection and allow lawmakers to tax people differently based on income level.
• In response, Rep. David McSweeney sponsored House Resolution 31 to oppose the progressive income tax.
• Committee hearings for SJCRA 1 could begin as soon as next week.
• A constitutional amendment for a progressive income tax could not appear until November 2020. The state couldn’t begin collecting revenue from it until fiscal year 2021.

To calculate how much more you’d have to pay under a progressive income tax, visit: illin.is/calculator.

For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.