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In a historic vote, Illinois House on Monday agreed to ask voters to amend the 1970 Constitution by allowing a graduated rate tax based on the amount of income and repealing the current flat income tax.
This decision was made at the conclusion of a 73-44 party line vote, two votes more than the bare minimum required to be approved. This is an important victory for the first-term elected Democratic governor, JB Pritzker, who campaigned for the election on the principle of higher income taxation for the richest as part of a comprehensive plan to solve the financial problems of Illinois. Pritzker hailed the vote as "a giant step for the middle class".
The proposed amendment will not be ratified by voters until the November 2020 general election. It would require the approval of 60% of voters on the issue, or the majority of voters, to be passed.
Democrat-led House action, which joined a Senate vote approved on May 1 by the 40 Democrats in the House, paves the way for a long and controversial battle between supporters and opponents of the Democrats. a progressive rate taxation system.
Pritzker promised that legislators would adopt income tax rates that would provide relief or at least stay the same for 97% of state employees, those earning $ 250,000 a year or less. Earlier this month, the Senate approved a law establishing new progressive rates that fit with Pritzker's scheme, but the plan is still waiting for a vote in the House.
"The commitment is to vote for rates that actually protect the middle class and those who are trying to get there," Pritzker told a press conference after Monday's vote. "That's what we all believe in: protecting the middle class. That's what a democrat is, defending the interests of the middle class and those trying to reach the middle class. That's what I ran my campaign on. That's why we won by 16 points because all of us, who defend the fair tax, think it's been too long since we have not fought for the middle class in this state. "
In praise of Mr. Pritzker for his leadership, House of Representatives President Michael Madigan called Monday's vote "a big step toward a stronger Illinois."
"There is still work to be done and House Democrats are ready to continue our efforts to build a stronger middle class and a stronger Illinois by making income taxes and property taxes more equitable for the middle class." "said Madigan in a statement.
During a three-hour debate that preceded the vote, Republicans claimed that the progressive tax plan would facilitate higher rates for lawmakers and warned that middle-class taxpayers would eventually be taxed at the same time. rates above the current rate of 4.95%. While Democrats have said that voters should be allowed to step in, GOP lawmakers have countered that some voters had already had their say when leaving Illinois.
The Republican Republic, Margo McDermed of Mokena, has called the proposal for tariffs pending a vote in the House of Representatives of "teaser tariffs, fake tariffs, lies".
"If you think it does not hurt you, you're wrong," McDermed warned middle-class taxpayers.
Avery Bourne, a Republican state state Raymond, added, "There are simply not enough rich people in this state to pay the insatiable appetite for spending that we see here in Springfield."
Democrats argued Pritzker's election over a tenure of Republican governor Bruce Rauner, which represented a mandate for the governor's campaign initiatives, including a change in the state's income tax.
Proponents of progressive taxation have said that the current state uniform tax could also be changed at any time, and that any increase would be more onerous for lower incomes. They claimed that Republicans are largely trying to protect the rich against significantly higher taxes.
"We place too much of our government 's financial burden on the backs of people who can afford it the least," said Rep. Robert Martwick, a Chicago Democrat who sponsored the proposed amendment.
Illinois has spent a good part of the last 20 years trying to balance its budget, reducing funding for public schools and universities, state parks and child welfare, while the amount of his debt and pensions was increasing, said Martwick.
"It's a reform. That's what we all come to do here: identify problems, find solutions. That's the solution for Illinois, he said.
House GOP leader Jim Durkin of Western Springs has blamed the state's many financial problems on the House Democrats, who have been in control of the chamber for almost 36 years.
"These misfortunes, these troubles, these painful cuts, are decisions made by the majority party. That's the truth, "said Durkin in Monday's debate," so it's my advice to the House Democrats today: take responsibility for this mess before asking more of its citizens. "
Pritzker and his supporters acknowledged that raising local property taxes was one of the main concerns of voters, but promised that the ratification of a new income tax structure would be a first step towards more comprehensive changes to the tax system. Illinois tax system.
They announced their support for a task force to study long-term changes to reduce property taxes, much of which is a critical source of funding for local schools.
They also touted new legislation to create a property tax relief fund to provide an unspecified discount on future property tax bills, although it is uncertain how much would cost such a program or where the funding would come from.
Some Democrats in the House had said that it was necessary to lighten the property taxes to be able to vote in the amendment on income tax.
"For the first time in my term, I know we finally have the momentum to provide property tax relief to our communities. Our current system is not working and we all know it, "said Grayslake Democrat Representative Sam Yingling during the debate. "The process of restructuring the property tax will not be easy, but I argue that this process starts today."
Forerunner of the battle to try to influence voters before the progressive vote on a tax amendment, in November 2020, advertising on television and on cable channels appeared for months. Think Big Illinois, which is backed by Pritzker, has been running ads asking for public support, while various groups, including Ideas Illinois, led by the former president and CEO of the Illinois Manufacturers' Association, 'oppose this project.
Each party has adopted its own lexicon for the proposal. Pritzker and his supporters call it "fair tax". Opponents allied with republican interests call it "the tax on employment".
"Over the next year and a half, President Madigan and Governor Pritzker will change this tax in a thousand ways by calling it" fair, "but not once will they call it what. it's actually: a blank check for Springfield politicians signed by Illinois families, "said in a statement Idles Illinois president Greg Baise.
While the vote to put the amendment on the 2020 vote is a major victory for Pritzker, lawmakers are scrambling to approve of other parts of the governor 's ambitious agenda, including legalizing and taxing the recreational marijuana and sports betting and create a large-scale public works construction program. – before the end of the spring legislative session scheduled for Friday. The details of these plans are still being negotiated, as is an expenditure plan for the fiscal year beginning July 1st.
Earlier Monday, the Democratic representative of Blue Island, who sponsored the legislation on the extension of games, said that lawmakers would be able to reach a consensus on sports betting, new casino licenses and other questions by the end of the week.
Pritzker called on lawmakers to pass a stand-alone bill on sports betting this spring to generate $ 200 million in license revenue to help balance his spending plan for the fiscal year beginning on 1st of July. But it is now clear that getting enough votes will almost certainly require reaching an agreement on new casino licenses and other issues that lawmakers have not been able to settle since then. 2013, at the time of the elections. Pat Quinn vetoed the latest game expansion bill approved by the General Assembly. Pritzker recently said that he was supporting a wider gambling expansion bill.
"The dynamic of having the executive and the legislature work together to try to do something is something we never had before," Rita said.
Republicans, in particular, are striving to create new casinos in areas such as Rockford and Danville in order to generate revenue to finance construction projects in public schools, state universities and universities. Other facilities as part of a capital construction plan. Meanwhile, Chicago Mayor Lori Lightfoot sent emissaries to Springfield to argue for a casino license for the city, among others.
Democrats want Republican voices to help approve a plan to repair buildings, roads and bridges, but the GOP refuses a long list of tax increases that Pritzker has offered to pay.
"If the game does not pass, the capital will not pass," said Republican Sen. Dave Syverson from Rockford last week. "But we really need games. Chicago needs it; Chicago deserves it. Communities like Rockford need it (casino licenses). So we need this gambling bill, not only to fund capital, but to fund communities that are struggling economically. "
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