Illinois Might Adopt One Of The Highest Income Taxes In The Nation
April 21, 2016
Of particular note, the companies responsible for over half of all small business income would be subject to a top marginal rate of 9.75%, which is significantly higher than Illinois corporate income tax rate of 7.75% (including two separate taxes on corporate income, one at a 5.25% rate and one at a 2.5% rate). Even businesses with income above $500,000 but not more than $1 million would pay more as pass-throughs than they would under the corporate income tax were this plan adopted. The table below gives a sense of how many Illinois small businesses would be adversely affected by the tax increase, and the percentage of total pass-through AGI they represent.
Pass-Through Businesses with AGI above $500,000 (2013)
|Pass-Through Range||Number||% of Total||AGI||% of Total|
|$500,000 – $999,999||19,150||5.05%||$4.47 billion||19.71%|
|$1,000,000 +||12,330||3.25%||$11.79 billion||$51.94%|
|Total Above $500,000||31,480||8.31%||$16.26 billion||71.64%|
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