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Voters to decide on Pritzker's graduated income tax program

SPRINGFIELD, Ill. (AP) - Voters will decide next year whether to ditch Illinois' flat-rate income tax in favor of one that hits the wealthy hardest following House action Monday that gave Democratic Gov. J.B. Pritzker his top campaign pledge and biggest victory since taking office.

On a 73-44 roll call, the Democrat-led House approved asking voters to weigh in on a state constitutional amendment allowing a graduated tax structure . Pritzker called it a "fair" tax because it would replace the current 4.95% flat rate, which critics contend eats up a greater share of income at lower wages.

The question won't appear on ballots until the November 2020 election, but Pritzker wanted legislative approval before Friday's scheduled adjournment to give voters plenty of time to digest the changes .

Crippling debt associated with years of skipping required pension contributions, overspending, a 2015-17 budget dispute that has resulted in $15 billion associated with past-due bills, and rising costs which existing revenue can't catch hangs over Illinois. Pritzker said harmful spending cuts or hikes in the flat tax might also fix the problem.

"As Illinois faces down a multibillion-dollar budget deficit into the foreseeable future, we cannot do nothing," Pritzker said. "I choose fairness. And I believe that Illinois will, too. And thanks to today's vote, Illinois will get to make that choice."

The constitutional amendment doesn't mention rates or levels of income - those issues must be addressed in separate legislation. But Pritzker intends to tap incomes over $250,000 for a greater share of tax revenue. The changes proposed by Pritzker would allow the 97 percent of Illinois taxpayers that fall under the $250,000 threshold to pay the current 4.95% tax rate or less.

The governor claims the changes would generate more than $3 billion a year to pay bills. But the GOP spent Monday afternoon lashing out at the opportunity it gives Democrats to spend whatever they want and adjust tax rates to cover the bills.

"People can portray it like it's magic money, like it's free," said Republican Rep. Tom Demmer. "The reality is that for every dollar this government takes in, it's $1 that comes out of the pocket of a taxpayer in Illinois. We're saying give your money to us and let the state decide how to spend it."

Democrats have repeatedly remonstrated that it's never easy for a General Assembly to raise taxes. The measure's sponsor, Chicago Democratic Rep. Robert Martwick, noted that since the Illinois income tax was initiated at 2.5% a half-century ago, it's been increased a handful of times and reduced at others.

That makes the case for keeping the flat rate, said Rep. Ryan Spain, a Peoria Republican.

"It acts as a very powerful disincentive to continue adjustments and manipulation of tax rates to feed the whims of the General Assembly and the appetite for spending," Spain said.

Rep. Yehiel Kalish, a Skokie Democrat, said those are all things voters can weigh when they cast their ballots.

"We're asking the people," Kalish said. "Can you tell me why someone would oppose the will of the people?"

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The amendment is SJRCA1.

Online: https://bit.ly/2InCpXU

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Follow Political Writer John O'Connor at https://twitter.com/apoconnor

Illinois state Rep. Robert Martwick, D-Chicago, left, greets Illinois Gov. J.B. Pritzker on the floor of the Illinois House of Representatives after the bill he sponsored, SJRCA1, passed 73-44, Monday, May 27, 2019, in Springfield, Ill. The vote will put Pritzker's graduated tax proposal on the November 2020 ballot and its approval would mean eliminating the current flat-rate tax of 4.95%. (Ted Schurter/The State Journal-Register via AP) The Associated Press
Illinois state Rep. Robert Martwick, D-Chicago, acknowledges colleagues after the bill he sponsored SJRCA1, passed 73-44, Monday, May 27, 2019, at the House of Representatives, in Springfield, Ill. The vote will put Gov. J.B. Pritzker's graduated tax proposal on the November 2020 ballot and its approval would mean eliminating the current flat-rate tax of 4.95%. (Ted Schurter/The State Journal-Register via AP) The Associated Press
Illinois state Rep. Avery Bourne, R-Raymond, speaks against SJRCA1, Monday, May 27, 2019, at the state House of Representatives, in Springfield, Ill. The bill passed and will put Gov. J.B. Pritzker's graduated tax proposal on the November 2020 ballot and its approval would mean eliminating the current flat-rate tax of 4.95%. (Ted Schurter/The State Journal-Register via AP) The Associated Press
Illinois state Reps. Darren Bailey, R-Louisville, left, and William Davis, D-East Hazel Crest, discuss issues surrounding SJRCA1 during debate on the bill, Monday, May 27, 2019, at the state House of Representatives, in Springfield, Ill. The bill passed and will put Gov. J.B. Pritzker's graduated tax proposal on the November 2020 ballot and its approval would mean eliminating the current flat-rate tax of 4.95%. (Ted Schurter/The State Journal-Register via AP) The Associated Press
State Rep. Emanuel "Chris" Welch, D-Hillside, speaks in favor of SJRCA1, Monday, May 27, 2019, at the state House of Representatives, in Springfield, Ill. The bill passed and will put Gov. J.B. Pritzker's graduated tax proposal on the November 2020 ballot and its approval would mean eliminating the current flat-rate tax of 4.95%. (Ted Schurter/The State Journal-Register via AP) The Associated Press
Illinois House Minority Leader Jim Durkin, R-Western Springs, takes notes during the nearly 3 hours of debate on SJRCA1 in Springfield, Ill., Monday, May 27, 2019. The vote will put Gov. J.B. Pritzker's graduated tax proposal on the November 2020 ballot and its approval would mean eliminating the current flat-rate tax of 4.95%. (Ted Schurter/The State Journal-Register via AP) The Associated Press
Rep. Robert Martwick discusses the House action to put a constitutional amendment to implement Gov. J.B. Pritzker's graduated income tax on the November 2020 ballot in Springfield, Ill., Monday, May 27, 2019. Voters decide whether to eliminate Illinois' flat-rate tax system which critics claim is regressive. Rep. Robert Marwick, D-Chicago, the sponsor of the amendment which underwent nearly 3 ½ hours of debate on the House floor, looks on. (AP Photo/John O'Connor) The Associated Press
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