20 Mar 2014 | illinoispolicy
Myth #1: “The ‘fair tax’ will only affect the rich.”
Don’t be fooled. The ‘fair tax’ is being sold as a tax on the rich. But under the proposal from state Rep Naomi Jakobsson, D-Urbana, the lawmaker who is sponsoring the bill to put a so-called “fair tax,” or progressive tax, amendment on the November ballot, Illinoisans will start paying higher tax rates at an income of just $18,000. This “fair tax” is nothing more than a huge tax increase on middle-class families of Illinois who are already overburdened. The average Illinois family can expect a tax increase of $781 a year. That’s unfair. Use the calculator to see how the “fair tax” will personally impact you.
Myth #2: “The ‘fair tax’ is a reform measure.”
Don’t be fooled. The progressive “fair tax” will not remedy the state’s spending problem or improve accountability. In fact, it does the opposite, providing politicians with a new, larger piggy bank that they control. Giving politicians more money gives them no incentive to change their over-spending ways. That’s unfair. It’s not the flat income tax structure that needs to be reformed; it’s the out-of-control spending and behavior of Illinois politicians.
Myth #3: “The ‘fair tax’ will restore fiscal solvency and stability to Illinois.”
Don’t be fooled. By the time the “temporary” tax increase of 2011 expires in 2015, Illinois families and businesses will have turned over an extra $31 billion to the state. That is more than what Illinois spends in a year on all core government services, including education! Yet even with all of this extra money, state government is still in deep fiscal trouble. Illinois’ credit has been downgraded five times since the tax hike was enacted; its unemployment rate remains one of the highest in the nation, and politicians paid off very little of the state’s $8.5 billion backlog – still owing more than $7 billion in unpaid bills. This is in spite of lawmakers claiming that the 2011 tax increase would solve all these problems! The additional revenue generated from the so-called “fair tax” will allow lawmakers to treat your income as their personal line of credit. That’s unfair.