Election day is two weeks from Tuesday and for people living in Illinois, there’s one amendment on the ballot that could have a major impact on how you get taxed.
In Illinois, residents are taxed at a flat rate, so no matter how much someone makes, everyone gets taxed the same percentage, which currently is 4.95 percent. But that could change if you vote yes.
It would switch to a graduated income tax, meaning the more someone makes, the higher they get taxed.
The different tax brackets would go as follows:
- If a single or married couple makes less than $10,000, they will be taxed at 4.75 percent
- Income from $10,000 to $100,000 would be taxed at 4.9 percent
- Income from $100,000 to $250,000 would stay at the current rate of 4.95 percent
- Income from $250,000 to $350,000 for a single filer’s or joint filers’ from $250,000 to $500,000 would be taxed at 7.75 percent
- Income from $350,000 to $750,000 for a single filers or joint filers from $350,000 to $1 million would be taxed at 7.85 percent
- Income of more than $1 million for joint filers’ and $750,000 for single filers will be taxed at 7.99 percent
For example, if a person makes $1.4 million, they will be taxed at 7.99 percent. If someone makes $100,000, the first $10,000 will be taxed at 4.75 and the other $90,000 will be taxed at 4.9 percent.
“I think people are more willing to pay a little more in taxes if they see the benefit, right? And if you don’t, if it’s just sending more money that’s going to lead to more spending, more debt, you don’t see any benefit to it, to you as a citizen, then it’s probably not a good deal,” said Mike VanZuiden, NelsonCorp accountant.
If the amendment passed, it will go in to effect Jan. 1 2021.