Gov. J.B. Pritzker unveils graduated state income tax plan he says would give break to taxpayers earning less than $250,000

By Dan Petrella
Chicago Tribune

MARCH 7, 2019, 2:15 PM

Gov. J.B. Pritzker on Thursday unveiled proposed rates for his graduated income tax plan, the cornerstone to his plan for stabilizing Illinois’ shaky finances.

Under the plan released Thursday, 97 percent of taxpayers — those whose net income is less than $250,000 — would see their state income tax bills decrease, according to a presentation from the Pritzker administration.

The state currently taxes personal income at a rate of 4.95 percent regardless of the taxpayer’s earnings. The Illinois Constitution mandates a flat income tax structure, but Pritzker campaigned on passing an amendment to shift to a federal-style graduated structure, under which higher earners pay higher rates.

Throughout his campaign and in his budget address last month, Pritzker declined to disclose his proposed tax rates, saying they would be negotiated with lawmakers.

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