House Speaker Mike Madigan is responding to mounting pressure on House Democrats
to oppose a progressive tax by filing a resolution of his own.
Madigan introduced House Resolution 1025 on April 26, and 42 Democratic
lawmakers have signed on so far. Meanwhile, 50 House Republicans have signed on
to a resolution opposing a progressive tax.
While Madigan would have Illinoisans believe it would only be a tax increase on
the rich, recent history and Illinois’ spending problems dictate the middle
class would face tax hikes under a progressive tax system – where income is
taxed at increasingly higher rates, rather than the current flat rate of 4.95
percent.
Proponents of scrapping Illinois’ constitutionally protected flat tax make three
key claims: a progressive tax would cut taxes on the middle class, it would go a
long way toward reducing income inequality and it would benefit the state’s
economy.
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These claims are misleading at best.
States with progressive income taxes have seen
slower economic growth and faster growth in inequality. Most
economists agree that more progressive tax structures reduce
economic growth. And one of the rare progressive tax proposals to
outline an actual tax structure in Illinois would hike income taxes
on residents earning as little as $17,300, inflicting serious damage
on an already-weak state economy.
Given proposals like this, it’s no wonder nearly 25,000 Illinois
taxpayers have signed on to a petition opposing a progressive income
tax via illinoispolicy.org. A poll conducted by Illinois Policy
found 42 percent of active likely voters in Illinois oppose a
progressive tax, with 29 percent unsure or having no opinion, and 29
percent supporting.
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