If an Illinois worker takes a pay cut during a recession, she knows the state isn’t going to take an even bigger chunk out of her paycheck. That’s because the state income tax rate stays the same. But if her home loses value, too, she could still see her property tax bill go up. Government...View Report
An income tax hike to 5 percent makes a call for a progressive tax system during the 2018 gubernatorial race a much easier sell.
High-income earners provide the majority of Illinois’ income tax revenue, and IRS data show that Illinois is losing these taxpayers to out-migration.
Illinois lawmakers can learn valuable lessons from states that have protected essential government services from swings in the economy.
The Illinois Department of Revenue has projected losses of 20,000 private-sector jobs, 43,000 residents to other states on net, and $1.9 billion in GDP in the first four years of a progressive tax.
Lang’s progressive-tax proposal would hit successful small businesses, which account for 72 percent of all small-business income in Illinois.
State Rep. Lou Lang’s progressive tax would hurt the middle class by making Illinois home to the second-highest small-business tax rate in the U.S.
Replacing Illinois’ fair, flat income tax with a progressive tax would mean that some married couples with both spouses working would pay more in state income taxes than if they remained single.
Under Lang’s plan, Illinois’ top tax rate for noncorporate businesses would become 11.25 percent — the second-highest rate in the U.S.
A progressive tax would give Illinois politicians carte blanche to raise rates, which would end up sticking middle-class taxpayers with rates originally intended for “the rich” – all while chasing still more residents and businesses out of the state.
The top 18 percent of Illinois taxpayers cover more than 60 percent of the state’s income taxes, and the state’s millionaires pay 15 percent of Illinois’ income taxes.