SPRINGFIELD, Ill. (WAND) – Gov. JB Pritzker has signed a new budget into law and put his signature on possible income tax rate changes.
The budget, which is activated on July 1, includes $40.1 billion for operating expenses. A press release from Pritzker’s office says the budget is balanced and will crate $150 million in a surplus that the state can use to tackle a remaining bill backlog.
“A new era of fiscal stability has arrived in Illinois,” said Gov. JB Pritzker. “This budget balances our obligations while making consequential investments for working families, for our communities, and for our future. And we are on the verge of finally creating a fair income tax in Illinois that puts the burden of fixing our finances on people like me, who can most afford it, not the 97 percent of Illinoisans earning less than $250,000.”
His office says important components in the new budget include priorities of education, health care, public safety, vital human services and criminal justice reform. It will phase out the corporate franchise tax and fully fund state pension contributions.
SB 687, which includes new income tax rates, was signed by the governor. Proposed new rates would match the following chart:
Voters will either approve or deny the constitutional amendment establishing a new tax system in November 2020. If approved, the new rates would be applied and could be part of the Fiscal Year 2021 budget.
Pritzker’s office says the tax change would increase property tax credits by 20 percent and create a $100 per child tax credit. Those credits would be unavailable at higher income levels.
Illinoisans can use this link to calculate tax rates for their families.
