Senator Don Harmon (D-Oak Park) explains the Fair Tax initiative that's pending in the Illinois Legislature and why he has long supported shifting to a fair tax in a new video.

The proposal would allow Illinois to shelve its archaic flat income tax structure, which is enshrined in the state constitution, and replace it with a fair tax in which lower rates would apply to lower incomes and higher rates would apply to higher incomes.

"I've supported the fair tax for years because I'm convinced it's the only way we get out of this hole we're in in Illinois," Harmon said. "We have no nimbleness in our tax policy. We are very reluctant to raise income taxes because we know how much it hurts working families.

"If we don't have the flexilbity to apply lower rates to lower income levels and higher rates to higher income levels, we'll never dig out of this without raising income tax rates on everybody in the state."

Senator Don Harmon (D-Oak Park), president pro tempore of the Illinois Senate, released the following statement regarding his vote today to approve emergency funding for Illinois universities and human service providers:

“Today the General Assembly voted for intermediate funding to offer some temporary relief for state universities and human service providers that face closure as we continue trying to find areas of compromise with Gov. Rauner.

“The most unfortunate part of today’s vote is that the governor has legislation on his desk that would fully fund universities and human service agencies, rather than give them just enough to keep their doors open for the short term.

“I am frustrated that the state of Illinois’ budgeting process has devolved into a system of bandages and short-term bail outs. ‘A fraction of funding is better than zero funding’ is no way to approach budgeting for state government.”

Roughly 99 percent of Illinois taxpayers and an overwhelming number of small businesses would see an income tax cut under a proposal advanced Tuesday by Senator Don Harmon (D-Oak Park).

Legislation making its way through the Illinois Senate would amend the Illinois Constitution and permit the General Assembly to enact a fair state income tax, with lower rates applying to lower incomes and higher rates applying to higher incomes.

The amendment – SJRCA 1 – passed in the Senate Executive Committee on Tuesday, clearing the way for it to move to the Senate floor for consideration. Identical legislation is making its way through the Illinois House.

“I firmly believe it is time for Illinois to join the modern era and implement a fair income tax that helps the hardworking people of this state hold on to more of their paychecks,” Harmon said.

“Illinois taxes all residents at a flat rate across the board, regardless of income. This archaic system of penalizing the poor and rewarding the rich is ripe for exactly the kind of meaningful structural reform Gov. Rauner has been demanding.”

The constitutional amendment only would enable the state to enact a fair income tax. Separate Senate legislation – an amendment filed Tuesday to Senate Bill 518, which is sponsored by Senator Toi Hutchinson (D-Chicago Heights) – would implement the fair tax rates.

Illinois is one of only two Midwestern states with a flat tax, which is enshrined in the state constitution. Indiana has a flat tax, but it allows an additional local income tax to be collected, with rates that vary by county. SJRCA 1 would bar local governments in Illinois from imposing income taxes.

Among all states, 34 have a progressive – or fair – income tax. Nine have a flat income tax, and seven have no income tax at all. Missouri, Wisconsin, Iowa and Minnesota have a progressive income tax structure.

“There are better ways to structure tax rates, as other states already have learned. Illinois has been slow to come to the table on this,” Harmon said.

“The time is right for serious consideration of a fair state income tax, which would result in a healthier bottom line for working families, as well as for the state government they help to support.”

Dear friends,

As my legislative colleagues and I continue to look for opportunities to collaborate with the governor on budget solutions that support Illinois' working families, I also have been busy advancing legislation that benefits my constituents and Illinois.

As always, I encourage you to stay in touch. Should you have any questions, please contact my office at 708-848-2002.

Sincerely,

Senator Don Harmon
39th District – Illinois

Senator Don Harmon (D-Oak Park) issued the following statement today regarding the Illinois budget stalemate:

“Every day my colleagues and I are confronted with sobering reminders of the consequences of Illinois’ historic budget stalemate. In communities throughout the state, organizations that help the poor, the sick, the elderly, the young and the disenfranchised on behalf of state government are closing their doors because they have not been paid. Highly respected public universities and community colleges are preparing what amount to doomsday scenarios because they, too, have received no state money. As the state’s backlog of bills grows, so does uncertainty about Illinois’ future.

“Senate Bill 2046, which the Senate approved today (with changes suggested in the House), would offer assurances to providers of vital services that are on the brink of collapse today, while giving Democratic and Republican lawmakers in the General Assembly time to continue working with the governor on longer-term solutions to Illinois’ financial and economic problems.

“I don’t think we can say it enough: The General Assembly and the governor cannot allow Illinois’ network of human services and higher education to collapse in the short term for the sake of non-budgetary initiatives that require time and effort to negotiate. Shutting down the government is not an option. This legislation offers temporary relief.

“I urge Gov. Rauner to sign Senate Bill 2046 and bring some stability to universities, community colleges, human service providers and the communities statewide that rely on those institutions for jobs and for help.”