New
proposed legislation provides income tax option for unemployed
taxpayers
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[MARCH 10, 2005]
SPRINGFIELD --
State
Sen.
Larry Bomke, R-Springfield, is urging the Illinois Senate to
support Illinois' unemployed citizens.
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Wednesday, the Senate Labor Committee approved
Senate Bill 2066, legislation Bomke sponsored that would require
the Illinois Department of Employment Security to inform people
claiming unemployment that they may choose to have state income tax
withheld from their unemployment benefits on a per-check basis.
"This option already exists but has
never been implemented," Bomke said. "Senate Bill 2066 simply offers
unemployed citizens the opportunity to have state tax withheld a
little at a time rather than force these individuals -- who are
already financially burdened -- to be responsible for providing a
large lump-sum payment at the end of the year."
Bomke clarified that this
legislation is a "worker-friendly" proposal because it allows a
taxpayer to have 3 percent per pay period deducted from each check,
rather than being responsible for paying 3 percent of his or her
annual benefits in one lump sum. Under current law, unemployed
taxpayers are not even offered the option to withhold state income
tax.
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![](../images/ads/current/LPL_small%201.gif) |
![](../images/ads/current/maple_ridge_9-24-04.jpg) "Unemployed citizens often owe
significant amounts of money to Illinois when they file their taxes
because there was no state tax initially withheld from their
unemployment checks," Bomke explained. "This creates a needless
economic strain on people who are obviously already financially
strapped."
If approved, the bill will also
improve fluidity of the state's cash flow, Bomke said. By
withholding tax on a per-check basis, the state will receive revenue
steadily throughout the year, instead of cultivating a system where
the collection of unemployment tax return revenue is contingent on
the taxpayers filing their tax returns.
Senate Bill 2066 will be considered
by the Illinois Senate before moving to the Illinois House of
Representatives for approval.
[Illinois
Senate Republican Caucus news release] |