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Illinois Senate OKs graduated tax rates

The Illinois State Capitol Building in Springfield.

SPRINGFIELD, Ill. (AP) – The Senate has approved a graduated income-tax structure that charges a rate of 7.99 percent for the most affluent residents.

The plan by Olympia Fields Democratic Sen. Toi Hutchinson was approved 36-22. It would not take effect until 2021 and only if voters approve a constitutional amendment to replace the flat-rate income tax. The Senate approved asking the voters to decide on an amendment earlier Wednesday.

Mattoon Republican Sen. Dale Righter says have varying rates makes it easier to raise tax rates in the future. He cited examples in other states where lawmakers raised the highest rates on the richest filers in order to raise revenue. He says an increase under a flat-rate system is harder because it means raising rates on everyone.

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