Series of November 2019 Capital Bonds
BEAL OF
The Income Tax Amendment Proposal
Public Act 101-008 Income Tax Amendment
Marginal Net Income Level,
THE STATE
Rates¹
4.75%
4.90%
Single Filers
$0-$10,000
$10,001-$100,000
Net Income Level,
Joint Filers
$0-$10,000
Legislative
Action
$10,001 - $100,000
4.95% $100,001 - $250,000 $100,001 - $250,000
7.75% $250,001 - $350,000 $250,001 - $500,000
7.85% $350,001 - $750,000 $500,001 - $1,000,000
7.99% Over $750,000 Over $1,000,000
Statutory
Changes
• Constitutional amendment has been approved by three-fifths of
the members of both chambers.
• Income tax rates were passed in separate legislation with the
implementation contingent on the passage of the constitutional
amendment.
•The amendment will be put to the voters for the November 2020
election.
Voter
Action
• Amendment becomes effective if approved by either 60% of those
voting on the amendment or a majority of those voting in that
election.
General
Election
Based on Public Act 101-008, if and only if
voters approve the Income Tax
Amendment in November 2020 ...
$3.6 billion in additional revenue²
• 97% of earners get tax relief
• 20% Increase in Property Tax Credits
Revenue
Collection
• $100 per Child Tax Credit³
OF ILLINO
AUG. 96 1818
• If approved by voters, under P.A. 101-008, the fair tax would be
implemented in January 2021, providing a half-year of additional
revenue to the state in fiscal year 2021.
¹Once income reaches the top threshold, entire income is taxed at 7.99% rate
2The $3.6 billion estimate includes additional revenue from an increase in the corporate tax rate to 7.99%
³Income thresholds for property tax credits remain unchanged from current law; for Child Tax Credit, single filers eligible up to $80,000 in net income and married/joint filers eligible up to $100,000 in
net income, with credit phase-out starting at $40,000 and $60,000, respectively
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