Illinois Policy Institute –
State Rep. Naomi Jakobsson, D-Urbana, recently revealed a new progressive tax proposal with rates that hit Illinois’ middle and working classes hard.
Under current Illinois law, the individual income tax rate will be 3.75 percent in 2015. Under Jakobsson’s new plan, however, a higher 4 percent rate kicks in for people earning just $18,000. That income tax rate targets Illinois’ working class.
But Jakobsson’s progressive tax rates attack the middle class as well. Her 5 percent tax rate applies to people earning just $36,000. When an Illinoisan earns more than $58,000, Jakobsson’s tax rates jump to 6 percent, and again to 7 percent on income earned after $95,000 – nearly double the rate Illinoisans will pay in 2015.
It’s no surprise that Jakobsson’s progressive tax hike proposal targets the middle class – it’s how progressive income taxes work. That’s where a lot of the money is.
Just look at where the top progressive tax rates – the rates that are supposed to “make the rich pay their fair share” – start in other states.