Legislation also balances individual and corporate ratio at 1:1, applying the same progressive formula for both individual and corporate taxpayers
Springfield, IL - Sen. Don Harmon (D-Oak Park) has moved forward new legislation tying a specific rate structure to his Fair Tax Act proposal, including a fixed rate structure that would provide a tax relief for 94% of Illinoisans, including everyone making up to $205,000. Filing of SB350 marks another key step forward for a Fair Tax, which would replace Illinois' antiquated, regressive flat tax with fairer rates, while maintaining adequate revenue to protect vital investments in education, health and human services, and public safety.
Harmon's bill also equalizes the individual and corporate tax ratio at 1:1, applying the same graduated formula to both corporations and individuals?a tax cut for all businesses currently paying the 7% flat rate. Under the proposed rate structure, with lower rates for lower incomes and higher rates for higher incomes, the median individual Illinois taxpayer earning $55,137 annually would receive a tax cut of $303.
Harmon said he was incredibly encouraged by the surge of support for putting a Fair Tax on the November ballot for citizens to decide following his introduction of a rate structure, and the addition of Rep. Christian Mitchell as chief sponsor on the House side.
"The introduction of a rate structure that offers tax relief for 94% of Illinoisans while preventing draconian cuts to vital services that would result from Illinois driving off the impending fiscal cliff has been an absolute game changer," said Harmon. "People understand this is fundamentally all about fairness."
"Just as the statewide grassroots movement of citizens supporting a Fair Tax has been surging for months, my House colleagues are now taking a hard look at the choices in front of them and many see that this is a third way?a way to provide the services people need and to do so in a way that provides tax relief for 94% of Illinois families," added Mitchell.
Polling shows that 77% of voters support a Fair Tax, with lower rate for lower incomes and higher rates for higher incomes. Since its introduction in 2013, a large and growing statewide coalition has grown in favor of a Fair Tax, and news analysis over the weekend confirms its place at the top of the legislative agenda as Springfield considers budget options for FY2015.
"The choices available today are bad for Illinois families: to extend a regressive flat tax or to cut 13,400 teachers from the classroom, to take 95,000 kids off of early childhood education, to say 'no' to 30,000 college students wishing to get a MAP grant, to close 11 prisons and release 15,000 prisoners, to lay off 3,000 corrections officers, to cut the state police by 30%. The Fair Tax is the third way," said Sen. Harmon.
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