Tax reform plans considered in the Capitol

By Kelsey Gibbs |, Alex Davis |

Published 03/26 2014 12:07PM

Updated 03/27 2014 05:44PM

Update: 5:35 pm, 3/27/14, Thursday
SPRINGFIELD -- Hundreds of union workers from all over the state showed up at the Capitol. They want a fair shake and a fair tax.

They're pleading with lawmakers to push for a progressive tax. It's based on a person's income. They feel it's only fair for people who make more to be taxed more.

Representative Adam Brown (R) opposes the bill. He says it's far from fair. It failed to make it out of a House committee Thursday.

Lawmakers say, according to the state's constitution, they can't enact a progressive tax. Voters would have to make that decision. It could be on a ballot in November.
Original: 10:06 pm, 3/25/14, Tuesday
ILLINOIS -- A new progressive tax plan could soon circulate in the Statehouse. Illinois lawmakers are considering several tax reform plans; some, they claim could save you some cash. WCIA-3's Alex Davis keeps us Connected to the Capitol.

Illinois' call for tax reform has many lawmakers at the drawing board, all pitching their plans to eager listeners.

"This is the best way politically, and as a policy matter, for us to proceed."

The latest idea would be a so-called "money saver" for 94% of the state's taxpayers, but that's only if the state's temporary 5% tax remains. But, if it goes back to 3%, only a marginal group would save.

"We can continue an unfair regressive flat tax at 5% or we can cut services; the services on which people rely."

But, to others, the progressive or graduated tax isn't fair at all since incomes of $200,000 or more would have the highest rate.

"If there were to be a progressive income tax passed in the state of Illinois, small business owners, the job creators in our state would actually be hurt the most."

Kim Clarke-Maisch of NFIB says the business owners would get hit the hardest.

"This is exactly the kind of tax that not only stops them from growing, but in some cases, may cause them to close their doors."

It's the state's poor who would save the most.

"This is actually a tax decrease any way you look at it. It would generate $23 million less than the current tax structure."

That bill could be introduced later this week.

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