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Graduated Income Tax Proposal Gains Traction

State of Illinois

Advocates for a graduated income tax are making gains in the Illinois General Assembly. A Senate panel passed it out of committee. That plan appears to be gaining some support in the House, even after a different version of a graduated tax was nixed last week by a committee. Opponents say the proposal is bad for the business climate. Todd Maisch, with the Illinois Chamber of Commerce, points to Illinois' high unemployment rate.  He says individuals and small businesses in a position to create jobs would be taxed out of the market.

"The flat tax is the fair tax and a progressive income tax is bad for the economy because it's bad for the job creators and eventually the people of Illinois," Maisch said.

Advocates of a graduated tax say it would give most Illinoisans a break from their current income tax bills.

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