This weekend marks the three-year anniversary of the 2011 state income tax increase. But the anniversary also marks another milestone for taxpayers: we are just one year away from tax relief. Illinois taxpayers currently fork over 5 percent of their paycheck to the state. Politicians like to say that 5 percent of your household income...
Illinois has a dirty little secret buried in its tax history – the first income tax approved in Illinois was a progressive tax. Fortunately, the progressive tax was ruled unconstitutional and was never implemented. But now the threat of a progressive tax hike is back again. Originally, Illinois didn’t have an income tax. When the...
Fighting the progressive tax in Illinois The battle to raise taxes again is underway in Illinois. Politicians and special interest groups across the state have put a plan in motion to implement yet another income tax hike in Illinois – one that targets the state’s working- and middle-class residents. Politicians already pushed through a record...
Lawmakers failed to keep their promise to pay down the state’s bills despite the fact that they are still raking in billions in new money from the 2011 tax hike. In fact, Illinois’ unpaid bills are slated to reach $9 billion during the Christmas season this year. When the Illinois General Assembly passed a record...
Illinois’ corporate income tax rate is already the fourth-highest in the industrialized world. Yet some lawmakers want to push rates even higher. State Rep. Naomi Jakobsson, D-Champaign, wants swap out Illinois’ constitutionally protected flat rate income tax on corporations with a progressive income tax hike. And that would be on top of the fact that...
On Nov. 5, Colorado voters defeated a progressive income tax increase by a two-to-one margin — more than 66 percent of the voters said no to higher taxes. Colorado’s Amendment 66 was a ballot initiative to swap out the state’s competitive flat rate income tax for a progressive income tax increase. Specifically, lawmakers wanted to...
As the Illinois General Assembly heads back to Springfield for veto session next week, here is a quick look at what elected officials have signed on to the Illinois Policy Institute’s legislative efforts to prevent lawmakers from amending the state’s constitution to permit a progressive income tax hike, which would increase taxes on 85 percent...
State Rep. Naomi Jakobsson, D-Urbana, recently revealed a new progressive tax proposal with rates that hit Illinois’ middle and working classes hard. Under current Illinois law, the individual income tax rate will be 3.75 percent in 2015. Under Jakobsson’s new plan, however, a higher 4 percent rate kicks in for people earning just $18,000. That...
It’s hard not to notice the disappearance of Illinois’ manufacturing sector. Anyone driving through the outskirts of Peoria can witness the closed buildings and half-abandoned neighborhoods. Cities all across Illinois have seen a similar story unfold. Illinois’ manufacturing base has been in decline, losing over 130,000 manufacturing jobs in the past decade. Even during the...
State Rep. Naomi Jakobsson, D-Urbana, penned a press release attempting to mask her agenda for higher taxes in Illinois and sell her progressive tax plan as something it isn’t. When it comes to her peers and opponents, Jakobsson suggests that arguments about a progressive income tax for Illinois need come with coherent policy arguments combined with facts....
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.