Illinois speaker eyes millionaire tax for school funding

CHICAGO Thu Mar 20, 2014 7:24pm EDT

Michael Madigan, speaker of the Illinois Representatives, listens to the State of the State address in the House Chambers of the Illinois State Capitol in Springfield, Illinois February 1, 2012. REUTERS/Sarah Conard

Michael Madigan, speaker of the Illinois Representatives, listens to the State of the State address in the House Chambers of the Illinois State Capitol in Springfield, Illinois February 1, 2012.

Credit: Reuters/Sarah Conard

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CHICAGO (Reuters) - Illinois' powerful speaker of the House of Representative on Thursday unveiled a plan that would slap a tax surcharge on millionaires in the state in an effort to raise $1 billion a year for schools.

Chicago Democrat Michael Madigan's plan surfaced just two days after voters in the Republican primary election chose multi-millionaire venture capitalist Bruce Rauner to face incumbent Democratic Governor Pat Quinn in the November general election.

Chip Englander, Rauner's campaign manager, said economic growth was needed to boost education funding.

"We need to take a look at our entire tax system to make Illinois more competitive and lower the tax burden on the people of Illinois," Englander said in a statement.

Under the speaker's plan, annual incomes topping $1 million would be taxed an additional 3 percent over the state's flat income tax rate, with the additional revenue distributed to schools on a per-pupil basis.

"This plan brings long overdue fairness to the state tax structure and provides a needed boost to education funding to help give our children more of the resources they need to succeed," Madigan said in a statement.

The proposed constitutional amendment would need approval from the Democrat-controlled House and Senate by May 5 in order to be placed on the ballot for the November general election, according to the statement.

Illinois' personal income tax rate, which was boosted to 5 percent in 2011, is scheduled to fall to 3.75 percent on January 1 unless lawmakers take action to keep the higher rate in place. Quinn's fiscal 2015 budget presentation planned for next week is expected to address how the cash-strapped state will deal with the tax rate roll-back.

(Reporting by Karen Pierog; Editing by James Dalgleish and Cynthia Osterman)

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Comments (1)
morbas wrote:
In support of state surtax in the present federal scenario. This small measure brought CA out of debt, yet this has insignificance and need citizens involvement to stabilize USA currency.
Citizens need to know the truth about government budgets — national, state and municipal. Federal plus state plus municipality is $6.03 trillion. The sum total of all personal income is $12.98 trillion. Thus, the governments are operating at 50% percent of total personal income.
It gets tougher…
The US dollar is the worlds transaction and main reserve currency. The world’s international debt securities is at $39Trillion US dollars. With a federal debt approaching 75% of U.S. gross domestic product, stability of the Green Back is a concern, will the USA government inflate out of the deficit?Now, fully 85% of foreign-exchange transactions do not use the Greenback (Wall Street Journal). The dollar reign as the standard for international debt securities is under assault as foreign interests flock to a currency exchange formula for ‘virtual’ stability.
The House of Representatives has the sole authority of taxation and can look no where else to shed it’s purpose of meeting obligations. The House failure requires a solution mandated by the people, we must throw off the Grey Oligarchic Partisans (GOP) Corporate America gambit.

To: Office of Senator ____________________
United States Senate Washington,
D.C. 20510

To: Office of Representative_________________________
U.S. House of Representatives
Washington, DC 20515

We the people of this United States do proclaim this federal government ‘of, by and for the people’. That, in order to fairly distribute revenue burden, to satisfy ‘net income’ progressive taxation, to balance all governments budgets, and to not tax poverty;
The people mandate:
Income National Tax code that shall use margin graduated income tax principle: Margin $30k 0% single, $60K 0% joint, income above this a linear increasing rate {Income-[$30k or $60k])*(Income/$800k)*90%; 90% limit} . Exemptions shall be prohibited. The Federal Reserve shall amend the (90%) $800K margin, and control currency printing mandated to maintaining currency availability and value. The Federal Reserve shall set the Margin rate value well (>2x) above highest of all State Poverty Level(s). Revenue shall be proportioned 1/3rd federal,1/3rd state proportioned per cast ballot and 1/3rd municipality proportioned per cast ballot.
This National Tax is a peoples tax, no other citizen taxation shall be permitted. Business shall not be taxed. The Federal Reserve shall control taxation. The people will by simple majority approve or reject all margin and rate changes at every Congressional House Representative election year ballot.

morbas(i) by birth Monmouth Illinois.

Mar 21, 2014 9:36am EDT  --  Report as abuse
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