PRESS RELEASE: Illinois Policy Institute applauds House Resolution opposing graduated income tax

PRESS RELEASE from the ILLINOIS POLICY INSTITUTE MEDIA CONTACT: Diana Rickert diana@IllinoisPolicy.org or (312) 607-4977 Illinois Policy Institute applauds House Resolution opposing graduated income tax Implementing a “graduated” or “progressive” tax structure in Illinois would mean tax hikes for middle class Illinoisans SPRINGFIELD (April 15, 2013) – Across the state, tax hike advocates are laying...

PRESS RELEASE
from the ILLINOIS POLICY INSTITUTE

MEDIA CONTACT: Diana Rickert
diana@IllinoisPolicy.org or (312) 607-4977

SPRINGFIELD (April 15, 2013) – Across the state, tax hike advocates are laying the groundwork for Illinois to abandon its flat income tax in favor of a “progressive” or “graduated” state income tax system. This is being pitched as a “tax on the rich,” but in reality would mean tax hikes for middle class Illinoisans.

Today, state Rep. David McSweeney announced that he and Reps. David Harris, Joe Sosnowski and Ron Sandack have proposed House Resolution 241, which opposes a graduated income tax in Illinois. The Illinois Policy Institute applauds this effort, and commends these legislators for leading the charge against the progressive tax.

“This progressive tax will be pitched as a tax for the rich, but the reality is far different. Progressive taxes will hurt the middle class in Illinois the most. Tens of thousands of jobs will be destroyed, and economic output will decrease by billions of dollars,” said John Tillman, CEO at the Illinois Policy Institute. “Between 2001 and 2010, the nine states with no personal income tax outperformed the nine states with the highest marginal personal income tax rates.”

So far, HR 241 has the support of state Reps. Ed Sullivan, Dennis Reboletti, Brad Halbrook, David Reis, Pam Roth, Jeanne Ives, C.D. Davismeyer, Charlie Meier, Darlene Senger, Barb Wheeler, Jim Durkin, Tom Morrison, Jill Tracy, Dwight Kay, Mike Tryon, John Cabello, Kay Hatcher, Patti Bellock, Renee Kosel and Tom Demmer.

A progressive tax plan supported by tax hike advocates has been circulated across the state. The Illinois Policy Institute conducted an economic analysis of this plan, and found that it would:

• raise taxes on Illinois’ middle class
• force tax hikes on 85 percent of Illinois taxpayers
• hurt Illinois’ already crippled economy
• destroy at least 65,000 jobs, and
• decrease Illinois’ economic output by a staggering $19 billion to as much as $26 billion

“Under a graduated income tax, income tax rates would increase as family income rises,” said McSweeney, R-Barrington Hills. “We need to be incentivizing work effort, investments and entrepreneurship and not punish families when they make more money.”

For the Illinois Policy Institute’s research report is on the progressive tax plan being circulated in Illinois, click here.

Media contact: Diana Rickert (312) 607-4977.

The Illinois Policy Institute is a nonpartisan research and education organization dedicated to making our state a beacon for liberty and prosperity for all citizens. As a leading voice for economic liberty and government accountability, the Institute engages policy makers, opinion leaders and citizens on the state and local level by promoting free market principles and liberty-based public policy initiatives for a better Illinois. To learn more about the Institute or review our policy work, please visit: illinoispolicy.org