Evidence from Connecticut suggests the progressive income tax could cost Illinois homeowners substantial equity in their homes.View Report
Asking Illinoisans to pay more in taxes to receive less in services has been the trend in state government for the past decade, driven by the ever-growing cost of Illinois’ worst-in-the-nation pension crisis.
On the heels of losing his signature “fair tax,” Illinois Gov. J.B. Pritzker wants House Speaker Mike Madigan out as the state Democratic leader. Both U.S. senators also make that call.
Two-thirds of voters polled favored a “fair tax” in March. On Election Day that flipped to 55% opposing it. Voters understood how the amendment could usher in retirement and other taxes, but tax proponents found it easier to claim deceit.
Gov. J.B. Pritzker’s push for his “fair tax” is headed for rejection by Illinois voters. State lawmakers now must face the public pension debt driving the state’s fiscal crisis.
Illinois politicians do not have a great track record when it comes to keeping promises to taxpayers.
Members of Pritzker’s administration, advisors and lawmakers have suggested a progressive income tax should tax retirement income in Illinois.
Cook County property taxes have grown at triple the rate of the cost of living. The “fair tax” backers promise it will bring property tax relief, but the evidence refutes their claim.
The progressive income tax amendment would carry a hidden cost of $1,800 a year in lost home value for 3.2 million homeowners if Illinois sees the same impact as Connecticut.
Increased property and sales taxes will likely offset all savings from progressive income tax scheme.
The credit rating agency also said Illinois will soon pass the point of no return on public pension debt. It warned against schemes to stretch or delay pension payments.