How often do graduated and flat rate states change their tax rates?

November 5, 2020

How often do graduated and flat rate states change their tax rates?

A proposed amendment to the Illinois Constitution that would allow for a graduated-rate income tax system was rejected by voters in the November 2020 election.  vote, the state Constitution only allows a flat-rate structure, meaning that all levels of personal income are taxed at the same rate. 

Proponents of the amendment poinedt out that under the preapproved rate structure, most Illinois taxpayers will see an income tax decrease. However, opponents argued that allowing the graduated income tax structure might make it politically palatable for lawmakers to increase tax rates more often in the future.

This report, published Oct. 7, 2020, examines what other states that have graduated rate structures have done with their tax rates in the recent past.


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Research Area: Fiscal Health of Illinois

Policy Initiative: none

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