9 states looking to cut taxes, Illinois looking to hike taxes
According to Bloomberg, at least nine states are currently pitching tax cuts. In addition to the proposed $500 million tax cut by a Gov. Rick Scott in Florida, the tax cut efforts include: Republican governors Scott Walker of Wisconsin, John Kasich of Ohio, Paul LePage of Maine, Terry Branstad of Iowa, Sam Brownback of Kansas...
According to Bloomberg, at least nine states are currently pitching tax cuts. In addition to the proposed $500 million tax cut by a Gov. Rick Scott in Florida, the tax cut efforts include:
- Republican governors Scott Walker of Wisconsin, John Kasich of Ohio, Paul LePage of Maine, Terry Branstad of Iowa, Sam Brownback of Kansas and Nikki Haley of South Carolina have all trumpeted proposed or already-accomplished tax cuts.
- Democratic governors Andrew Cuomo of New York and Mark Dayton of Minnesota are also pushing to reduce taxes before facing voters in gubernatorial elections next year.
States are cutting taxes to better compete in today’s modern economy, where capital and labor are becoming increasingly mobile.
But in Illinois, lawmakers are moving in the opposite direction.
Several special-interest groups and lawmakers in Illinois are instead pushing to increase taxes by swapping out the state’s constitutionally protected flat-rate income tax for a progressive income tax.
The plan is to make permanent the 5 percent temporary income tax hike that passed in 2011 and tax income earned after $5,000 at ever-increasing marginal tax rates, topping off at 11 percent.
That would increase the tax rate on 85 percent of Illinois taxpayers.
A year ago one political news outlet in Illinois was trying to brush this tax hike proposal under the rug — dubbing it some sort of make-believe “secret plan” to raise taxes.
But that secret plan materialized in to two separate pieces of legislation that were introduced during the 2013 spring legislative session.
And many lawmakers haven’t been secretive about their support for higher taxes in Illinois. Many have gone on record in full support of a progressive income tax increase in Illinois.
“Passing a progressive income tax is “one of my goals before I stop breathing and I sure hope we can get that done in Illinois. Sooner rather than later” —Gov. Pat Quinn
“The most important reform is to enable the Legislature to enact a graduated or progressive income tax.” —state Rep. Naomi Jakobsson, D-Champaign
“I would back a constitutional amendment to shift from a flat income tax to a progressive income tax system.” —state Rep. Camille Lilly, D-Chicago
“The state of the economy, the tax increase and the level of concern over the large tax cuts and benefits being provided to corporate interests has created an opportunity to truly address the need to move Illinois to a graduated tax system.” —state Rep. Kelly Cassidy, D-Chicago
“I can see merit with proposals that I have seen creating a graduated income tax.” —state Rep. Derrick Smith, D-Chicago
In the private sector, if all burger joints were increasing efficiencies and cutting prices while one restaurant did the opposite, that one restaurant would go out of businesses. Let’s hope Illinois doesn’t make that mistake.