CHICAGO, March 20 Illinois' powerful speaker of
the House of Representative on Thursday unveiled a plan to slap
millionaires in the state with a tax surcharge 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
A spokesman for Rauner's campaign did not immediately
respond to a request for comment.
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 Jan. 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 include how the cash-strapped state will deal with
the tax rate roll-back.
(Reporting by Karen Pierog; Editing by James Dalgleish)