SPRINGFIELD, Ill. _ In a historic vote, the Illinois House on Monday agreed to ask voters to change the 1970 state constitution by authorizing a graduated-rate tax based on the size of income and repealing the currently mandated flat-rate income tax.
The move came on a 73-44 party-line vote, two votes more than the bare minimum needed for approval. It represented a significant victory for first-term Democratic Gov. J.B. Pritzker, who campaigned for election on the concept of taxing wealthier incomes at a higher rate as part of an overall plan to deal with Illinois' ailing finances.
The proposed amendment won't go before voters for ratification until the general election in November 2020. It would require approval from 60% of those voting on the issue, or a majority of those voting in the election, to be adopted.
The action by the Democratic-led House, joining with a Senate vote May 1 that was approved by all 40 Democrats in the chamber, sets the stage for a lengthy and contentious battle between advocates and opponents of a graduated-rate tax system.
Pritzker has promised that the income tax rates that would be adopted by lawmakers would provide some relief or at least remain the same for 97% of the state's wage earners who make $250,000 or below. The Senate approved legislation setting new graduated rates earlier this month, but the plan is still awaiting a vote on the House floor.
Opponents contend the tax plan would make it easier for lawmakers to raise rates and warn that middle-class taxpayers will end up being taxed at rates higher than the current 4.95% flat rate.
Republican state Rep. Margo McDermed of Mokena called the rates proposal awaiting a House vote "teaser rates, fake rates, lying rates."
"If you think that this doesn't hit you, you're wrong," McDermed warned middle-class taxpayers.
GOP state Rep. Avery Bourne, from downstate Raymond, added, "There simply aren't enough rich people in this state to pay for the insatiable appetite of spending that we see here in Springfield."
Supporters, however, said the state's current flat-rate tax could also be changed at any time, though any tax increase would be more onerous on lower incomes. They contend Republicans are largely trying to protect the wealthy from significantly higher taxes.
"We put too much of the burden of funding our government on the backs of the people who can least afford to pay it," said Rep. Robert Martwick, a Chicago Democrat who sponsored the proposed amendment.
"This is reform. This is what we all come here to do: identify problems, find solutions. This is the solution for Illinois going forward," Martwick said.
Each side has adopted its own lexicon for the proposal. Pritzker and supporters dub it the "fair tax." Opponents allied with Republican interests have called it the "jobs tax."
In a precursor to the larger battle of trying to influence voters, ads on television and cable have been appearing for months on both sides. Think Big Illinois, which is backed by Pritzker, has aired ads urging public support, while a variety of groups, including Ideas Illinois, which is headed by the former president and CEO of the Illinois Manufacturers' Association are opposing the plan.
While the vote to put the amendment on the 2020 ballot is a major win for Pritzker, lawmakers are scrambling to approve other portions of the governor's ambitious agenda _ including legalizing and taxing marijuana and sports betting and creating a large-scale public works construction program _ before Friday's scheduled end of their spring legislative session. The details of those plans are still being negotiated, as is a spending plan for the budget year that begins July 1.
