One of the biggest debates now playing out in Springfield centers on whether Illinois should replace its flat-rate income tax with a graduated system that taxes higher income at higher rates. Democratic Gov. J.B. Pritzker recently proposed a series of rates he says would generate billions in new revenue while raising taxes only on the wealthiest 3% of Illinoisans, those reporting income of more than $250,000. Before lawmakers can take up his proposal, they must first add a question to the 2020 ballot asking voters to replace language in the state constitution that mandates a flat income tax. While Democrats control the Illinois Legislature, approval of any referendum to change the constitution requires an extraordinary majority of votes, so securing approval for Pritzker’s ballot question is far from certain. Meanwhile, interest groups representing both sides in the debate are busy trying to sway public opinion. We recently rated False a claim from a business-linked group … [Read more...] about Fact-check: Pritzker-allied group’s claim about other states’ income tax unfair
State income tax new york
HARTFORD — Liberal Democrats in the state House are looking to raise the income tax rate for the state’s wealthiest taxpayers. Members of the Progressive Democratic Caucus have yet to settle on a proposed increase to the top 6.99 percent rate, but they have set a ceiling of 2 percent to remain competitive with surrounding states. Another priority that was laid out on Thursday is expanding the state’s earned income tax credit, and caucus members will also oppose repealing the estate and gift tax. A Democrat-controlled legislature and former Gov. Dannel P. Malloy approved income tax changes in 2015 that increased the former top rate of 6.7 percent to 6.9 percent and added a new top rate of 6.99 percent. Rep. Josh Elliott, D-Hamden, said members of the Progressive Democratic Caucus believe a new top rate is warranted. He said he favors something close to 9 percent based on the top rates in neighboring New York state and nearby New Jersey. The top rate in New York is … [Read more...] about Democrats seek to raise state income tax
WASHINGTON — New Jersey residents got back just 82 cents for every $1 paid to Washington in 2017, according to a new report. That means federal tax dollars paid by the residents of New Jersey and nine other states subsidize states across the nation. And that was before President Donald Trump signed legislation limiting how much in property and income taxes they could deduct from their federal taxes each year.The second annual study by the State University of New York’s Rockefeller Institute of Government, released Tuesday, found that New Jersey taxpayers fared worse than residents of almost every other state. Only Connecticut, at 74 cents, received less on a per person basis. And only New York, with $35.6 billion, had a bigger gap than New Jersey’s $21.3 billion when it comes to how much money went to Washington versus how much state residents got back.Since then, Trump and congressional Republicans enacted a tax law that capped the federal deduction for state and … [Read more...] about Lots of states mooch off New Jersey and your federal tax dollars. And Trump’s tax law could make it worse.
Dear John, I am becoming nervous about the proposal for single-payer health care in New York. If this becomes law and state taxes go up to 27 percent on people with incomes over $141,000, I think the effect on New York state will be devastating. Upper-income taxpayers and corporations will leave the state in droves. The program will probably cost much more and revenue generated by taxes will probably be much less than anticipated. What effect will this have on the state’s finances, municipal bonds, etc? I would appreciate your thoughts on this. SF Dear SF: First, a “single-payer” system refers to “a health care system financed by taxes that covers the costs of essential health care for all residents.” The costs, in other words, are covered by a single public system. Let’s just get that out, because, like so many other programs of this nature, it’s (on purpose) not self-explanatory. Anything that is going to cost the state money and cause taxes … [Read more...] about The perils of New York’s single-payer health care plan
New York state’s tax agency said it is considering an investigation into allegations detailed in a New York Times story that President Donald Trump participated in “dubious tax schemes” that allowed his father to pass him more than $413 million while minimizing tax payments. In some instances, these schemes amounted to “outright fraud,” the Times story said. The Times said it had unraveled a complex effort by Trump’s father, Fred, to build and then pass along his wealth by examining more than 100,000 pages of documents from the businesses of Fred Trump. It said that, starting in the 1990s, Donald Trump had helped his father lower his tax bills via a sham corporation that processed padded invoices, by using improper tax deductions and by systematically undervaluing his father’s real estate properties. “The Tax Department is reviewing the allegations in the [Times] article and is vigorously pursuing all appropriate avenues of … [Read more...] about New York weighs tax probe after exposé on Trump riches