Illinoisans should get ready for an unpleasant financial
surprise in the New Year, and it won’t be your holiday shopping credit card
bill. Rather, we could be faced with a much larger tax bill from Springfield.
Governor Pat Quinn is pushing a 75 percent
state income tax increase, and it could be much larger. A supermajority vote threshold that has protected Illinoisans
during the latter half of 2010 will disappear on January 1. Then it’s open
season on taxpayers.
How to Lose Jobs and Alienate People: Proposed Tax Hikes Would Shrink Incomes and Destroy Jobs. Should the governor’s plan pass, the most immediate impact
is that the average household will face an increase in their tax bill of $596. Even
more troubling is that in the longer run there will be a much higher economic
cost to pay in either lower incomes or fewer jobs. A new study from the Illinois Policy Institute
found that Governor Pat Quinn’s 33 percent income tax hike will result a $1,353
personal income hit for each Illinois household or a loss of over 107,000
private sector jobs.
Fact Finder: Is Illinois a "Low Tax" State? Advocates of higher taxes often use the argument that “Illinois is a low
tax state” to make the case for revenue increases. Even if this
statement were true, it doesn’t follow that the government should dig
deeper into the pockets of hard-working families and businesses.
However, a closer look at the data challenges the underlying assumption
that Illinois is a “low tax” state. Illinois's tax system places significant burdens on families and businesses.
Spotlights on Spending. The Spotlight on Spending series highlights wasteful or inefficient programs
and spending with the goal of bringing more responsible spending and
accountable government to Illinois.
Pension Funding & Fairness Act. By embracing the Pension Funding & Fairness Act, Illinois will be
able to control spending excesses, budget responsibly, and fully fund
the annual required pension payment.