New proposed legislation provides income tax option for unemployed taxpayers         

[MARCH 10, 2005]  SPRINGFIELD -- State Sen. Larry Bomke, R-Springfield, is urging the Illinois Senate to support Illinois' unemployed citizens.

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.

"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]

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