Chicago, IL - When Illinois raised taxes by a record 67 percent in January 2011, Gov. Pat Quinn said, "We have some temporary tax increases that are designed to pay our bills, get Illinois back on fiscal sound footing and make sure that our state has a strong economy." It's been nearly two years since taxes were raised and the tax hike has failed. Illinois still has $8 billion in unpaid bills, Moody's and S&P have downgraded Illinois' credit rating and the state's unemployment rate is among the worst in the nation. But instead of enacting the reforms Illinois needs, Gov. Quinn and the political allies who helped him land the governorship are gearing up the next massive tax hike: an $8.6 billion progressive tax in 2015.
A new economic analysis by the Illinois Policy Institute shows how a progressive tax for Illinois would:
- raise taxes on Illinois' middle class
- force increased taxes on 85 percent of Illinois taxpayers
- hurt Illinois' already crippled economy
- destroy at least 88,000 jobs, and
- decrease Illinois' economic output by a staggering $17 billion to as much as $26 billion
"This unconstitutional progressive tax will be pitched as a tax for the rich, but the reality is far different. Progressive taxes will hurt the middle class in Illinois the most. Tens of thousands of jobs will be destroyed, and economic output will decrease by billions of dollars," said Ted Dabrowski, Vice President of Policy at the Illinois Policy Institute. "Instead of enacting yet another tax increase, Illinois lawmakers must get serious about reform. Kicking the can down the road has gone too far. It's time to choose a path to prosperity and repeal the 2011 tax hike."
The Illinois Constitution requires all Illinois taxpayers to pay the same tax rate. If a tax is levied on income at all, this is most fair and stable form of taxation because it allows everyone to pay the same percentage of income to taxes. However, a progressive tax plan being circulated across the state would tax Illinoisans at eight different rates, with the highest rate at 11 percent! This is unconstitutional and unfair.
The report is available here: http://illinoispolicy.org/news/article.asp?ArticleSource=5149
The Illinois Policy Institute is a nonpartisan research and education organization dedicated to making our state a beacon for liberty and prosperity for all citizens. As a leading voice for economic liberty and government accountability, the Institute engages policy makers, opinion leaders and citizens on the state and local level by promoting free market principles and liberty-based public policy initiatives for a better Illinois. To learn more about the Institute or review our policy work, please visit: www.illinoispolicy.org