Today, the Center for Tax and Budget Accountability released a report, "Cutting Taxes for the Middle Class and Shrinking the Deficit: Moving to a Graduated State Income Tax in Illinois," making the case for a graduated rate state income tax in Illinois, and illustrating two possible rate structures that would accomplish each of three major objectives:
There are many ways to reach these objectives; the illustrations in this report are meant to show the feasibility of doing so, rather than prescribe any particular path.
In addition, the report will lay out several arguments for the urgency of passing a Constitutional amendment to allow a graduated rate state income tax in Illinois:
The two illustrations of possible rate structures in the report both use a graduated rate structure to impose higher tax burdens on higher levels of income to raise much-needed revenue. They differ in the mechanism used to deliver tax relief to the bottom 98 percent of Illinois taxpayers.
Both scenarios give 98 percent of Illinois taxpayers-those making less than $300,000 in taxable income-a tax cut, or in the case of single filers making between $200,000 and $300,000 in the credit illustration, no tax increase.
For more information, contact CTBA's Executive Director, Ralph Martire, at (312) 332-1049 or by email at firstname.lastname@example.org, or Research Director Daniel Hertz, at (312) 332-1481, or email@example.com.
May 1, 2018
Bonnie Cox, LWVIL President
Hilary Denk and Heather Cunningham, LWVIL Issues Co-chairs
Kathy Nesburg and Andy Daglas, Issues Specialists
Illinois has the opportunity to greatly improve our fiscal situation by adopting a graduated rate income tax (also known as the Fair Tax), like that used in thirty-three other states. This requires amending the Illinois Constitution, which can only happen through a ballot initiative. The next opportunity to vote on a ballot initiative in a General Election occurs in 2020. In the meantime, we need to encourage our legislators to move ahead and put the graduated rate income tax initiative on the ballot.
Ask your state legislators to support House Resolution 1025. This resolution calls for an amendment to the Illinois Constitution to allow for a Fair Tax. It recognizes that Illinois needs more revenue to provide for education and other core services and that it must look to the wealthy to provide some of that revenue. Illinois is still in a fiscal crisis and we must take steps to remedy the problem by increasing revenues.
For more information on the Fair Tax, see the attached fact sheet.
The House Committee on Revenue and Finance will be holding a hearing at 2:30 PM tomorrow, May 2, 2018. You can file a witness slip as an individual. LWVIL has already filed in favor of the resolution at: http://my.ilga.gov/WitnessSlip/Create/112507?committeeHearingId=15988&LegislationId=112507&LegislationDocumentId=143004
Filing witness slips is a good way to demonstrate your support.
Find your legislators' contact info at https://openstates.org/find_your_legislator/
WHY IT MATTERS:
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