Proposed progressive tax would have raised taxes on anyone with more than $22,000 in taxable income

CHICAGO (April 29, 2014) – Today, supporters of the so-called “fair tax,” or progressive tax, conceded that they did not have enough votes to pass their tax hike proposal in the Illinois General Assembly. The proposed progressive tax would have resulted in a massive middle-class tax increase, forcing anyone with more than $22,000 in taxable income to pay higher taxes. The Illinois Policy Institute has been fighting this massive tax increase since its early stages. Illinois Policy Institute CEO John Tillman issued the following statement in response to the apparent defeat of the progressive tax:

“Today Illinois taxpayers won. Throughout the debate on the progressive tax, Illinoisans were able to see how some state legislators and special interests were looking for any excuse to raise taxes and dump more taxpayer money into failing state pension systems and government waste.

“The progressive tax was sold as a ‘fair tax’ that would ‘make the rich pay their fair share.’ However, the more information taxpayers received about the progressive tax, the more they realized it would have equated to a massive tax increase on middle-class Illinoisans that would only serve to feed Springfield’s insatiable appetite for over-spending. Illinois government doesn’t need more money; instead, legislators need to focus on truly reforming Illinois’ budget and bringing jobs back to our great state.

“In 2011, Democrats passed the largest tax increase in state history. That tax increase was billed as temporary, and the law requires the state tax rate to drop to 3.75 percent in January 2015. This means Illinois taxpayers are just months away from tax relief that was promised to them. With the progressive tax defeated, it now is time for legislators to keep their word to the people of Illinois and let the tax hike expire as scheduled and as promised.”