|
 Gov. J.B. Pritzker carried his “fair tax” to voters’ 2020
ballots on the promise of middle-class tax relief, but numerous tax and fee
hikes the governor plans to sign into law rob many Illinoisans of any promised
savings.
Under Pritzker’s proposed progressive tax system, a married couple in Illinois
with two kids earning the $79,168 median annual income and paying the average
property tax bill of $4,157 would see $195 in total tax relief, according to the
Pritzker administration’s online “fair tax calculator.”
But if that same family uses two cars on a regular basis, they will see a $300
tax hike under Pritzker’s capital plan, which doubles the state’s gas tax and
hikes annual vehicle registration fees.
 That would leave them $105 in the hole under the income tax rate structure that
would take effect if voters approve Pritzker’s progressive tax ballot
referendum. And that’s assuming lawmakers don’t change those rates to target the
middle class for more revenue. An Illinois Policy Institute analysis found that
to fully pay for Pritzker’s spending promises, the average family could end up
paying $3,500 more per year under a progressive tax.
Under Pritzker’s plan, average Illinoisans will see the state’s gas tax double
to 38 cents from 19 cents per gallon and annual vehicle registration fees spike
to $148 from $98, an increase of $50. An Illinois Policy Institute analysis that
found the typical Illinois driver will pay $100 more on gasoline each year under
a doubled gas tax.
[to top of second column] |
That doesn’t include a 6% tax on hourly or daily
parking garage use, and a 9% tax on monthly or annual parking
spaces; or a $1-per-pack cigarette tax hike that comes atop the
infrastructure plan’s vehicle tax and fee increases, raising the
state’s tobacco tax to $2.98 from $1.98.
Owners of electric vehicles, meanwhile, will register for $251
annually, up from $25 every two years, under Pritzker’s plan.
While the governor has blamed Illinois’ “regressive” flat income tax
for the state’s chronic population decline, each of the excise tax
and fee hikes included in his capital plan are regressive. Moreover,
those tax and fee increases taken together more than offset any
potential relief from his proposed progressive tax structure.
Unless the governor addresses the root cause of Illinois’ appetite
for tax hikes – unaffordable growth in government worker pension
costs – a progressive system will not protect Illinois’ middle class
from the threat of higher tax rates.
In fact, Illinois’ current flat tax structure is one of the only
obstacles state lawmakers face when weighing income tax increases.
On Illinoisans’ November 2020 general election ballots, voters will
decide whether to scrap that constitutional protection.
As Pritzker’s signature promise continues to deteriorate, the
governor should not be surprised if Illinois voters reject his “fair
tax” proposal at the ballot box in 2020.
Click here to respond to the editor about this article |
