View as PDF Chicago – Taxpayers United of America (TUA) and Illinois’ taxpayers were victorious once again in defeating the implementation of a graduated state income tax. TUA and its membership of tens of thousands of Illinois taxpayers have helped defeat every such attempt since 1992.
Jim Tobin, TUA’s founder and president, says that Illinois’ taxpayers know better than to let the Illinois General Assembly expand its damaging taxing powers any further. “Taxpayers are absolutely tired of the legislature overspending, digging the state deeper into debt, and then coming to hardworking taxpayers for a bailout. Our members hate the state income tax with a passion because every dollar that flows into Springfield’s coffers only encourages the Illinois General Assembly’s bad fiscal behavior and enables them to continue on the same unsustainable course. Taxpayers stood up to the legislature and won.”
Rep. Christian L. Mitchell’s (D-26, Chicago) proposed graduated income tax constitutional amendment, HJRCA59, was not brought up for a vote yesterday, and as a result will not be on the November ballot. Mitchell stalled the vote earlier in the week and had stated that he would call the amendment for a vote to get legislators on the record, regardless of passage.
But as it became clear that taxpayers were enraged and the legislation would fail when put to a vote, the push to inflict a graduated state income tax on Illinois was once again stopped.
“Amending the Illinois Constitution to permit a graduated income tax would have handed the Illinois General Assembly alarming power over the state income tax rates,” said Tobin. “Illinois’ state government is in shambles, but taxes must be lowered and spending must be cut. The state cannot continue to tax its way out of the financial fiasco it has created.”
“While taxpayers should celebrate another defeat of the graduated state income tax, the legislature is still in session, and the budget impasse is in its eleventh month. Taxpayers must always remain vigilant when the Illinois General Assembly is in session.”
View as PDF Chicago—April 29 marks Tax Freedom Day for Illinoisans, indicating the point in 2016 when taxpayers stop laboring to fund local, state, and federal governments with their taxes and finally begin to keep their hard-earned money.
“Illinois ranks 44th for its Tax Freedom Day in 2016, one of the latest in the nation” said Jared Labell, director of operations for Taxpayers United of America (TUA). “Sadly, Illinois appears near the bottom of the list this year, but that’s unsurprising as its 7,000 taxing bodies have transformed the Prairie State into the Government State.”
“Tens of thousands of taxpayers became Ex-Illinoisans since the temporary state income tax increase in 2011. That’s no coincidence. The U.S. Census Bureau data correlates with Tax Freedom Day falling later in Illinois annually as the tax burden for Illinois residents grows exponentially,” said Labell.
For Illinois taxpayers, Tax Freedom Day has been a day of mourning in recent years, occurring on April 15 in 2011, April 23 in 2012, April 25 in 2013, April 28 in 2014, and April 30 in 2015. The fact that Illinoisans are working for the government one day less this year can be attributed to the rollback of the temporary state income tax at the start of 2015, following the election of Gov. Bruce Rauner (R), but other local tax increases across the state prevented a better ranking.
According to the Tax Foundation’s annual “Tax Freedom Day” report for all 50 states, plus Washington, D.C., nationwide Tax Freedom Day fell on April 24, representing how long Americans have to work in order to pay the nation’s tax burden. However, if annual federal borrowing is included in the calculation, therefore factoring in future taxes owed, Tax Freedom Day would be pushed back more than two weeks to May 10.
By far, taxpayers will work the longest to pay local, state, and federal individual income taxes, totaling 46 days. Americans will pay $3.34 trillion in federal taxes in 2016 and an additional $1.64 trillion in state and local taxes, for an astonishing total tax bill of $4.99 trillion, or 31 percent of national income, according to the report. Americans will send more tax dollars to the government in 2016 than they will spend on food, clothing, and housing combined.
“Illinois is facing a $10 billion budget shortfall by this summer. The state has the lowest credit ratings nationwide and by far the worst-funded government pension system. Illinois has recorded fourteen straight years of budget deficits and is about to enter its eleventh month without a state budget,” said Labell. “The real question for Illinois taxpayers is simple. Taxes are revolting, so why aren’t you?”
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Chicago – Taxpayers United of America (TUA) urges the Illinois General Assembly to reject the proposals to amend the Illinois Constitution and implement a graduated income tax by opposing HJRCA59 and HB689.
“On behalf of TUA’s membership of tens of thousands of Illinois taxpayers, we call upon the Illinois General Assembly to defeat Rep. Christian L. Mitchell’s (D-26, Chicago) proposed graduated income tax constitutional amendment and Deputy Majority Leader Rep. Lou Lang’s (D-16, Skokie) legislation proposing rates under a new graduated income tax. Enacting these changes to the state income tax would have devastating consequences for Illinois’ economy and its taxpayers,” said TUA director of operations, Jared Labell.
“Approving the graduated income tax constitutional amendment and corresponding legislation will not come close to solving the state’s budget impasse. The projected $2 billion in additional tax dollars extracted from taxpayers won’t even cover the state’s current budget deficit. This legislation will further encourage residents to join the exponentially growing group of Americans known as Ex-Illinoisans.”
“Most importantly, amending the Illinois Constitution to permit a graduated income tax gives the Illinois General Assembly alarming power over the state income tax rates at a time when Illinois’ finances are clearly troubled and politicians are more likely to make shortsighted policy decisions with far-reaching repercussions.”
“We have witnessed tens of thousands of taxpayers leave the state in the past few years since the temporary income tax increase in 2011. Illinois is facing a $10 billion budget shortfall by this summer. The state has the lowest credit ratings nationwide and by far the worst-funded government pension system. Illinois has recorded fourteen straight years of budget deficits and is in its tenth month without a state budget,” said Labell.
“If members of the Illinois General Assembly wanted to prove to taxpayers that they are acting in good faith to resolve decades of financial mismanagement, then there would be a bipartisan effort to amend or repeal the Illinois Constitution’s pension protection clause, one of the leading drivers of the state’s poor financial position.”
“Instead, however, legislators are once again focused on misappropriating billions of dollars from taxpayers by attempting to appease the public’s calls to ‘Soak the Rich!’ without letting them in on a little secret. The fact is, tax rates can be altered, promises from the government can be broken, and there is no reason to believe that Springfield won’t come for your wallet if Illinois’ financial fiasco continues unabated,” said Labell.
“Soaking the rich today opens the door to plundering everyone else tomorrow. Illinoisans must understand that the state needs to cut spending and undergo systemic reforms. Resorting to a graduated income tax will only put more power in the hands of a legislature that has run amok with Illinois’ tax dollars for decades. Taxpayers should contact their legislators and demand that they reject the passage of HJRCA59 and HB689.”
