NFIB is keeping a watchful eye on Gov. J.B. Pritzker’s call for a progressive income tax to address the state’s budget woes.
Pritzker says the proposed tax would be “fair” and affect only the wealthy, but NFIB’s state director for Illinois, Mark Grant, said, “The devil’s in the details.
“What exactly will the rates be and at what income levels? None have been suggested so far, and there are real concerns that income tax rates will go up for the majority of taxpayers including middle-income earners,” Grant said. “He hasn’t revealed what he considers ‘wealthy,’ so there is a real concern that the increase could affect a majority of Illinois taxpayers including some middle-income earners and small business owners.” Most small business owners pay income taxes at the individual rate rather than the corporate rate.
In order to change Illinois’ tax code, it takes a state constitutional amendment. The House and Senate must pass the measure by a three-fifths majority before it goes to voters on the ballot in the 2020 the general election. However, Grant warns, the tax plan advocates want a vote before the end of session in May to put the measure on the ballot.
Grant said he is monitoring these efforts closely and will advocate against provisions that would hurt the state’s small business community. Small business owners who register for Small Business Day on March 19, will get a detailed briefing from tax experts on the potential ramifications. And then be able to talk directly with their legislators at the capitol.
