Chicago parents spend one-third more than the national average on school supplies. A 5% state sales tax holiday does little to help those struggling with back-to-school costs.
In a letter to the president, Gov. J.B. Pritzker joined other Democratic governors to urge the removal of the State and Local Tax deduction cap. The move would primarily benefit the wealthy, including Pritzker.
Within 20 years the portion of Illinoisans hit with the progressive tax hike would grow by over 150% if the rate of inflation mirrored the past two decades.
Illinois’ tax code already protects the poor and middle class from paying as high a rate as billionaires, meaning the ‘fair tax’ is really about lawmaker taxing power.
The progressive tax’s structure fails to account for inflation and includes a marriage penalty for 4 million Illinoisans. It is designed to creep farther into taxpayers’ wallets.
An Illinoisan making $12,400 a year would still pay nearly $1,800 in state and local taxes under the governor’s plan – a higher share of their income than residents of all but two states.
Property taxes in Illinois are nearly double the national average. Until state lawmakers trim down thousands of local governments and pursue pension reform, those bills wills remain high.
Springfield lawmakers have yet to learn the lesson that money walks. And it’s not just to other states. Sometimes, it walks past the legal dispensary with a 40% tax rate and into a dealer’s house.
Illinois can do it the old way and raise taxes to deliver pork projects. Or Illinois can be smart and make each tax dollar work hard to deliver projects that help residents and the economy.
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.