Regarding the guest column published Wednesday about Illinois’ “Fair Tax” proposals, while there are many very true comments in this column, there are some very important factors that are left out. And as an educator and researcher in the area of taxation, I feel are very important to keep them in mind when voters go to the polls.
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Dear Editor,
Regarding the guest column published Wednesday about Illinois’ “Fair Tax” proposals, while there are many very true comments in this column, there are some very important factors that are left out. And as an educator and researcher in the area of taxation, I feel are very important to keep them in mind when voters go to the polls.
No one wants to pay taxes, but it is the cost of a civilized society. Arguing whether a tax of any type is “fair” is akin to debating whether Brussels sprouts taste good; it depends on the person. Most surveys show that Americans view income tax systems where rates increase with income as being the fairest approach. What is typically viewed as a bad idea is locking tax systems into place using a constitution; a lesson learned at the federal level when the first income tax was ruled unconstitutional because the income collected from each state was not proportional to the population share of the state.
As for the specific arguments made in the column, it is true that Illinois is in desperate need of property tax relief, however, there is much misinformation about the form this “relief” would take. The only way that homeowners will see lower property tax bills is when the State of Illinois decides to spend money on education.
The national average for state funding to schools is about 46 percent and among the states that boarder Illinois, state funding ranges from the lowest in Iowa at 68 percent to a high of 76 percent in Indiana; compare this to about 25 percent in Illinois, and that is in a good year.
Evidence of this can clearly be seen on your property tax bill where education spending makes up at least half of the taxes owed. If residents truly want lower property taxes, Illinois is going to have to collect more revenue and spend it on education. No other method will work as property tax freezes or caps dictated by Springfield will only push down education quality even further.