IL Governor JB Pritzker addressed a joint session of the General Assembly to present his spending plan for FY21. His $3.5 billion graduated income tax hike took center stage during the speech.
Pritzker’s proposed budget would boost funding for child welfare, public education and Illinois’ chronically strained pension systems if voters in November approve the graduated-rate proposal, which would replace the state’s constitutionally mandated flat income tax. The tax would kick in Jan. 1 and raise an estimated $1.4 billion in the budget year beginning July 1.
The budget address kicks off negotiations with lawmakers expected to approve a budget before the May 31 deadline.
The Illinois Manufacturers’ Association has said the graduated income tax proposal amounts to a massive income tax increase on Illinois employers and families.