The Illinois Chamber of Commerce says a progressive income tax punishes success.
Northeastern Illinois Democratic state Sen. Don Harmon says that’s just angry rhetoric. Harmon says the pending proposal to tax income of up to $100,000 at 3.5 percent would be a tax cut for most small businesses.
Illinois Chamber of Commerce President and CEO Todd Maisch (MY-shh) says that kind of thinking takes away the incentive for success and job creation.
The tax is expected to generate $1.9 billion in new revenue. It would tax anyone in Illinois making more than $500,000 a year at 8.75 percent. That includes businesses that file as individuals. The current individual tax rate is 3.75 percent.