Taxpayer victories are all too rare in Springfield. But those
Illinoisans concerned about how much they send to state government and where
that money goes have something to celebrate.
The progressive income tax is dead … for now.
House Minority Leader Jim Durkin and 49 other Republican state lawmakers have
signed a resolution pledging opposition to a progressive income tax in Illinois.
This cuts into the supermajority support needed to pass a progressive tax
constitutional amendment out of the House. While often sold as a tax on the
rich, Illinois’ state spending problems mean middle-class families would be
whacked by a progressive tax structure, where rates rise with one’s income.
It’s a big win. The petering out of the progressive tax proposal offers
Illinoisans protection from potentially billions of dollars in income tax hikes.
But how did it happen? And how can Illinoisans push for more?
One major lesson from this fight: the accountability brought about by grassroots
action matters. The Republican caucus really can be the taxpayer advocate it
claims to be, especially when it’s clear Illinoisans will hold members to their
word.
This lesson began last summer. In the seven days leading up to the income tax
hike, Illinoisans sent more than 37,000 emails through the lawmaker contact tool
on illinoispolicy.org. Nine of the 15 Republicans who voted for that tax hike
didn’t even attempt to run for re-election. And another lost his primary race in
March.
In the past month, more than 12,000 Illinoisans signed on to a petition opposing
the progressive tax through the same tool.
But Republicans are the minority in Speaker Mike Madigan’s House. And Democratic
gubernatorial candidate J.B. Pritzker is campaigning on a progressive tax hike.
That means in order to make sure the progressive tax doesn’t rear its ugly head
again, bipartisan support for Durkin’s resolution is crucial.
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Pressuring Democratic members to sign on should be the No. 1
priority for Illinoisans interested in keeping their income taxes
from going up.
Of course, the future of Illinois depends not just on beating back
bad ideas. It depends on passing the good ones into law. A flat
income tax doesn’t fix Illinois’ problems, it just stops them from
worsening.
Here’s a solution that deserves attention: a spending cap.
A state spending cap is sorely needed for two reasons. First, it
ensures Illinoisans are getting a state government they can afford.
State spending has consistently grown faster than state incomes – 25
percent faster from 2005 to 2015. Instead of reform, that spending
yields calls for more debt and tax hikes. Better budgets and more
certainty for Illinoisans means slowing the growth of state
spending.
The second key reason is that right now, lawmakers can’t even figure
out how much money they have to spend. Try as they might to offer
accurate projections, state officials consistently produce revenue
estimates that don’t match one another or the actual amount of
revenue the state ends up generating. This broken process
contributes to unbalanced budgets year after year. The General
Assembly hasn’t even bothered adopting an official revenue estimate
since 2013.
But a spending cap would provide a magic number to lawmakers – a set
amount of money they can spend in a given year. No more, no less.
There’s no excuse for partisan politics when it comes to getting
Illinois’ finances in order. Thankfully, the spending cap has
bipartisan support, with state Sen. Tom Cullerton, D-Villa Park,
filing a constitutional amendment tying state spending growth to
economic growth. State Sen. Steve Landek, D-Bridgeview, has also
signed on, along with three Senate Republicans.
Taxpayers have won the defensive battle against a progressive tax
hike.
Now it’s time for some offense.
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