Key Points

• The Illinois Constitution currently requires a flat state income tax which means all individuals pay the same rate, currently 4.95%, and all corporations pay the same rate, currently 7%. A graduated income tax allows legislators to determine different rates for both individuals and corporations based on income earned.
• In May 2019, the legislature approved a ballot referendum question calling for a constitutional amendment to change Illinois’ constitution from a flat income tax to a graduated income tax.  As a result, voters will be asked in the upcoming 2020 election whether Illinois should amend the constitution to move from a flat tax income to a graduated income tax. 
• The amendment also repeals a critical taxpayer protection: the constitutional ban of more than a single tax on income. Future general assemblies will be allowed to tax the same dollar of income over and over.​

• Although the ballot question does not contain the new tax brackets, a separate piece of legislation establishing the rates under a graduated income tax system was approved by both houses in the general assembly and signed by the governor. Under the proposal, corporate income would be taxed at flat rate of 10.49%, the third-highest rate in the nation, while the highest bracket for pass-through business income would be taxed at 9.49%, the fourth highest in the nation. These rates will only go into effect if the voters approve the ballot referendum question.
• It is difficult, if not impossible, to install a graduated income tax that raises substantial new revenues, without significantly increasing the tax burden on the middle class.
• Given the adverse effect this proposal would have on job creators, the Illinois Chamber of Commerce is undertaking a number of advocacy initiatives to inform voters of the misinformation about graduated income taxes and the damage a graduated income tax would inflict on Illinois taxpayers.

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Illinois Chamber Income Tax Amendment Video Archive

APRIL 2020:
​Progressive Tax Update

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FEBRUARY 2020:
Key Issue - Progressive Tax

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JANUARY 2020:
​Illinois Has Fair Income Tax

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APRIL 2019:
IL Chamber Testimony

MARCH 2020:
PIT & Economic Opportunity

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FEBRUARY 2020:
​A Burden On Taxpayers

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NOVEMBER 2019:
Income ​Tax Across States

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APRIL 2019:
​SJRCA1 Overview

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Graduated/Progressive Income Tax In The News

• MARCH 2020: IL Municipal League Members Bash Governor’s Plan To Hold $73M Of Income Tax Revenue In Reserves
• MARCH 2020: Governor's Budget & Its Reliance On Iffy Graduated Income Tax Would Do Little To Fix Problems
• MARCH 2020: Fitch - Approval Of Graduated Income Tax ‘Critical’ To State’s Credit Position
• MARCH 2020: Pritzker's Office Pressures Newspaper To Unpublish News Story On Progressive Tax
• FEBRUARY 2020: The Rest Of The Nation Is Rooting For An Illinois Progressive Income Tax
• FEBRUARY 2020: 'Fair Tax' Would Cost Illinois 56K Jobs
• FEBRUARY 2020: Debating Illinois' Proposed Graduated Income Tax
• FEBRUARY 2020: Statehouse Insider - Budget, Graduated Tax Linked At The Hip
• FEBRUARY 2020: Slowest-Growing States Have Progressive Income Taxes
• FEBRUARY 2020: If Voters Reject Progressive Income Tax, Pritzker Promises To Cut State Spending
• FEBRUARY 2020: Illinois Chamber Fighting Pritzker Progressive Income Tax Proposal
• JANUARY 2020: State Leader Urges Joliet Chamber To Oppose Tax Revamp
• JANUARY 2020: With Voters Set To Decide On Progressive Income Tax, IL Wealth Flight Among Worst In The Nation
• JANUARY 2020: Maisch - The Flat Tax Is Really The Fair Tax
• JANUARY 2020: When Taxpayers Trust Springfield Part 7 - Warren Buffett & Others Warned About Pensions
• DECEMBER 2019: When Taxpayers Trust Springfield Part 6 - Fair Tax - ‘Would We Ever Break A Promise To You?’
• DECEMBER 2019: A Tale Of Two Flat Tax States - Tax Cut In MA, Could End With An Income Tax Hike In IL
• DECEMBER 2019: Progressive Income Tax Study Guide
• OCTOBER 2019: The Illinois Chamber Opposes A Graduated/Progressive Income Tax (PDF)
• OCTOBER 2019: Survey Shows Significant Support For Graduated Income Tax
• SEPTEMBER 2019: When Taxpayers Trust Springfield Part 5 - Would IL Politicians Return Money To Taxpayers?
• AUGUST 2019: What Illinoisans Need To Know About The Progressive Income Tax
• JUNE 2019: When Taxpayers Trust Springfield Part 4 - 6 Reasons To Oppose The 'Pritzker Tax'
• MAY 2019: When Taxpayers Trust Springfield Part 3 - 'Honest, We'll Only Soak The 3%!'
• MAY 2019: When Taxpayers Trust Springfield Part 2: 'Give Us The Tax Hike, We'll Fix Illinois!'
• MAY 2019: Illinois’ Graduated Income Tax Plan - What You Need to Know
• MAY 2019: House Vote Puts Pritzker's Graduated Income Tax Plan On November 2020 Ballot
• MAY 2019: Illinois Income Tax Calculator - How Would Gov. Pritzker's Proposed Graduated Income Tax Affect You?
• APRIL 2019: When Taxpayers Trust Springfield Part 1 - The 'College Illinois' Debacle
• SUMMER 2018: Is A Graduated Income Tax Right For Illinois? (PDF)

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JANUARY 2020: Illinois Chamber Progressive Tax Constitutional Amendment Presentation PDF (As presented by Illinois Chamber President/CEO Todd Maisch at the Ed/Glen Chamber's membership meeting January 31, 2020.

SEPTEMBER 2019: Illinois Chamber Case Against The Graduated Income Tax Presentation PDF

TAKE ACTION
CLICK HERE to sign the Illinois Chamber of Commerce's petition opposing the graduated/progressive income tax.