An Illinois Senate committee Tuesday approved tax rates that would go into effect if voters approve moving to a graduated state income tax after 2020.
The rates vary slightly from those proposed by Gov. J.B. Pritzker, in part because Senate Democrats created separate sets of rates for people who file joint tax returns and those who file singly. Pritzker suggested one set of rates for everyone, which had the effect of penalizing married couples who file jointly.
The tax rates bill was one of three approved by the Senate Executive Committee Tuesday that are all tied to approval of the graduated income tax. Another would end the state estate tax if the graduated income tax is adopted. A third bill would freeze school property taxes in any year the state meets its obligations to fully fund the school aid formula and for categorical spending on things like transportation programs.
The bills were approved on party line votes ahead of an expected vote later this week on the proposed constitutional amendment that would be before voters in 2020 asking them if they want to scrap the state’s flat tax system and go to a graduated income tax.