Progressive income tax not the fix for state's spending problems.
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Illinois is home to a few powerful interests who believe one problem is at the root of the state’s horrific finances.
It’s not the sinkhole of pension debt swirling beneath Springfield and communities across the state. It’s not the Illinoisans leaving – one every five minutes – to other states, taking their taxable incomes with them. It’s not the deck that’s been stacked against taxpayers for decades. And of course, it’s not that the state’s spending is out of control.
The problem, they say, is that Illinois does not tax its residents enough.
It’s a scary thought.
And without fail, the proposed solution to this non-existent problem is as follows: change the state’s constitution and pass a progressive tax hike.
As opposed to Illinois’ flat tax, where all earners are meant to pay an equal percentage of their income to the state, a progressive tax structure allows the state to set different tax rates for different incomes.
There would be arguably no bigger political victory for House Speaker Mike Madigan and his caucus. Every major Democratic candidate for governor – J.B. Pritzker, Chris Kennedy and Daniel Biss – has openly endorsed a progressive income tax as the solution to Illinois’ fiscal woes.
But Illinoisans of all political stripes should be holding out crisscrossed fingers en masse to ward it off.
The progressive income tax enjoys political support among Illinois Democrats for three reasons: it preys on struggling Illinoisans’ worst instincts; it would transform the political battlefield in Madigan’s favor for the foreseeable future; and it would shift the spotlight away from Springfield’s scandalous spending priorities.
Austin Berg is a writer for the Illinois Policy Institute. He wrote this column for the Illinois News Network. Austin can be reached at aberg@illinoispolicy.org.