Includes income tax cut, property tax relief for working families

SPRINGFIELD – Nearly all working men and women in the 48th Senate District would pay less in state income taxes under a historic overhaul that was approved by the Illinois Senate Wednesday.
State Senator Andy Manar (D-Bunker Hill) voted for a package of measures that includes new income tax rates requiring millionaires to pay their fair share to the state, as well as tax relief for property owners and elimination of Illinois’ estate tax.

“Anyone who makes less than $250,000 a year will get a tax cut under this plan. That’s nearly every single taxpayer I represent,” Manar said. “This is the right thing to do for people who find themselves working harder but taking home less. Those who have benefited from a robust economy can pay a little more to help bring stability to the state of Illinois.”

Under the proposal, only the top 3 percent of Illinois earners would pay more in income taxes. Everyone who makes less than $250,000 a year would pay a rate of 4.95 percent or less.

The package is part of a constitutional amendment that will require voter approval in 2020. The plan approved by the Senate Wednesday must go to the House for consideration next.

Manar, who shepherded the state’s recent revamp of the school funding formula, sponsored the property tax relief portion of the package. Under this measure, as long as the state lives up to its responsibilities to adequately fund school districts, including lunch programs and student busing costs, there would be little need for districts to go to local property owners seeking tax hikes.

Property tax relief has to be a priority for the state, Manar said, noting that his legislation gets at the root of what largely drives high property taxes across the state – funding for local school districts. In addition, it forces the state to own up to its responsibility of fully funding schools.

“It’s time to turn off the spigot of property taxes and make state funding the predominant source of support for schools,” he said. “This is the next step toward bringing true equity to the funding of schools while acknowledging the property tax burden has to be reduced over time.”

The package of legislation – the fair tax rates, elimination of the estate tax and property tax relief – are contained in Senate bills 687, 689 and 690. In addition, Senate Joint Resolution Constitutional Amendment 1 (SJRCA01) simplifies constitutional language about income taxes to allow for a fair tax while eliminating Illinois’ current outdated flat tax system.

 

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