A new editorial in the
Chicago Sun-Times—Pity the struggling billionaire who fears a graduated
income tax for Illinois—explains how the Fair Tax will
help set things right in Illinois and calls out wealthy opponents for
“promoting a falsehood” to protect their own bottom line and the special deal
they get under our current tax system.
“An extra dollar in the pocket
of a multi-millionaire—or, in the case of Griffin, a multi-billionaire—doesn’t
matter as much as the same dollar in the pocket of a working-class person,” the
editorial board wrote.
Our current tax system in
Illinois is unfair because it taxes those millionaires and billionaires at the
same rate as nurses, janitors and social workers. As the editorial concludes,
“Vote for fairness. Vote for a graduated income tax in Illinois on Nov. 3.”
Here are the key points of the
Sept. 9 Chicago Sun-Times Editorial:
- Now Griffin is making another investment, recently giving $20 million to a business group that aims to defeat Gov. J.B. Pritzker’s
graduated income-tax proposal come Nov. 3.
- We say investment, rather than contribution, because if Griffin
succeeds his personal bottom line will benefit tremendously.
- Griffin followed up his investment in the Coalition to Stop the
Proposed Tax Hike Amendment — which undoubtedly will plaster the airwaves
with ads against Pritzker’s proposal — with a Chicago Tribune op-ed last week promoting the falsehood that the governor is
engineering “a graduated tax scheme engineered to extract the greatest
amount of money possible from Illinois taxpayers.” But Griffin is not
being honest about Pritzker’s proposal, nor is he devoid of self-interest.
- Progressive taxation isn’t an outlier. It’s the norm.
- Illinois was a moderate tax state at the time Griffin helped
elevate Bruce Rauner into the governor’s mansion with millions of dollars
in contributions. Rauner happened to have millions himself, too.
- Rauner then effectively held state government hostage for two years
while trying to further lower state income tax rates that already had
dropped from 5% to 3.75%. Members of Rauner’s own Republican Party broke
with him, but Griffin didn’t. He rewarded Rauner with millions more in
campaign contributions to seek re-election.
- Thankfully, Pritzker beat Rauner. But Rauner’s four years in office
left our state in a world of hurt just in time for COVID-19.
- We’ve said this before, and we’ll say it again: An extra dollar in
the pocket of a multimillionaire — or, in the case of Griffin, a
multi-billionaire — doesn’t matter as much as the same dollar in the
pocket of a working-class person. Yet right now in Illinois, every dollar
is taxed at the same rate no matter how rich or poor you are.
- To our thinking, nothing makes a better argument for voting to move
our state to a graduated income tax.
- Pritzker says that, under his proposal, 97% of Illinoisans would
pay the same or less in taxes, while 3% would pay more.
- Amid the pandemic and the recession, does anyone really question
whether the state needs this? Does anyone really believe the state
government can cut its way to breaking even? Not a chance.
- Where, then, should the money come from?
- Should it come from the gardener in Lake Forest, the farmers in
Galena or the small business owners in Libertyville? Should it come from
the 20-somethings in Illinois trying to stake out their fortunes just like
Ken Griffin did some 30 years ago?
- Or should it come from the 3% of taxpayers fortunate enough to be
able to pay their fair share at this challenging time? The answer is
obvious.
- Vote for fairness. Vote for a graduated income tax in Illinois on Nov. 3.
Read the complete article here.
The aforementioned information is from
AFSCME 31
Commentary:
Commentary:
The wealthiest people should pay tax rates commensurate with
their incomes, but they do not in Illinois. The state’s flat tax preserves the
fortunes of the wealthy at the expense and victimization of everyone else. This
is immoral and unjust.
In Illinois, the wealthiest taxpayers do not pay as much of
their incomes in taxes as the poorest and middle-income wage earners. “Since
the rich are able to save a much larger share of their incomes than
middle-income families – and since the poor [can] rarely save at all – [flat]
taxes are inherently regressive” (The Institute on Taxation and Economic Policy,
ITEP).
Illinois is among 10 states in the nation with the highest
taxes paid by its poorest citizens at 13 percent (ITEP). According to United
for a Fair Economy, “at the core of the continuing budget ‘crisis’ facing
[Illinois] is the decades-old state tax structure, one that disproportionately
impacts low-income people because, unlike the wealthy, [low-income people] are
forced to spend a majority of their income purchasing basic needs that are
subject to sales taxes.”
The State of Illinois needs a fair tax rate that is
“efficient with minimal impact on the economic decisions that taxpayers have to
make” (Center for Tax and Budget Accountability, CTBA), one that captures
increased revenues in times of economic growth, one that maintains revenue collections
during poor economic times, one that is simple and not liable to inconspicuous
error, one that is transparent and builds trust with the state’s government
officials (CTBA), and one that helps 99 percent of the state’s population. A
fair tax rate is moral and just.
-Glen Brown
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