Thursday, March 06, 2014

Illinois Policy Institute - Illinois Unfair Proposed Tax

Like unfair on Facebook share on Twitter 
Legislators are being asked to consider a constitutional amendment that would replace Illinois’ flat income tax with a progressive tax, sometimes referred to as “graduated” or “variable rate” tax. Others incorrectly call it a “fair tax” – but it is nothing of the sort.

Here’s how much more the typical family living in a variety of DuPage localities would pay in higher taxes next year under the unfair progressive income tax plan.

What exactly should these families cut from their household budget to make room for more government? The mortgage payment? Food? Utilities? Retirement savings?

Proponents of a progressive tax hike are deliberately misleading the public by pretending that the current income tax rate of 5 percent, which reverts to 3.75 percent at the end of 2014, continues on in perpetuity.

A progressive income tax would first be implemented in 2015, should it get to the November general election ballot – and should it be approved by voters (polling says people are not buying into another tax hike).

An honest comparison would look at a progressive tax structure against 2015’s 3.75 percent flat income tax rate, not 2014’s 5 percent.

Of course, the proponents of a tax hike are not interested in an honest policy discussion. They want to minimize perceived costs to deceive voters. The easiest way to do that is to pretend that current law doesn’t give every Illinoisan real tax relief next year.

We won’t let them get away with this illusion.

One thing is for sure: Regardless of the final rate-and-bracket structure, a progressive tax will slam communities like those within DuPage County. This is because they’re “rich” relative to other areas in Illinois in the same way that the owner of a Honda Accord is “rich” compared to the owner of a Ford Focus.

That’s why you see local voices coming out against a progressive tax – they know what’s coming and are not going to take it sitting down.

How much higher will your taxes be under a progressive tax?

Visit to find out.

Kristina Rasmussen
Executive Vice President
Follow on Twitter

No comments: