Governor Bruce Rauner is predicting companies would flee the state if Illinois changed its income tax structure. Currently the personal income tax rate is 3.75%. Some Democratic candidates for governor are starting to campaign on changing to a graduated income tax rate - so wealthy people pay more. Rauner says that proposal would result in business owners leaving Illinois.
“If we double their tax rate, which could happen under some sort of a graduated scheme, we’ll see the flood of businesses go to a torrent out of Illinois.”State senators had been debating whether to increase the flat tax rate to nearly 5% as part of a grand bargain to end the budget impasse. But negotiations over that plan have stalled. For Illinois to move to a graduated income tax - the state constitution would have to be amended.