(WBBM NEWSRADIO) — Illinois Gov. JB Pritzker warned Wednesday that state finances are bleak after the failure of a ballot referendum to overhaul the income tax system.
The state constitutional amendment he backed would have allowed Illinois to switch from a flat income tax rate to a graduated rate under which wealthy people would pay more.
Voters in recent weeks had been bombarded by arguments for and against the measure, but ultimately it did not get enough support when ballots were counted.
Pritzker blamed millionaires and billionaires for bankrolling what ended up being a successful effort to sway voters. He predicted budget pain as he now tries to fill the gaps between revenue and spending, but Pritzker said he doesn't plan on raising the existing flat-rate income tax.
“There will be cuts, and they will be painful,” the first-term Democratic governor said at a news conference.
Illinois currently charges the same flat income tax rate on all individuals, regardless of the amount of money they make.
Critics say it’s unfair for poor people to get taxed at the same level as wealthy people; opponents said the tax overhaul Pritzker pushed for contained no budget reforms to control spending.
The current flat-rate is 4.95%. The amendment would have applied that rate, or a lower one, to people making less than $250,000. For those earning more than $250,000, the rate would have climbed and topped out at 7.99%, the Associated Press reports.
Pritzker warned that drastic budget measures are ahead, but he promised to work with legislative leaders and present a balanced budget.
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