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‘FAIR TAX’
BACKERS CONCEDE, BLAMING ‘DECEIVED’ VOTERS FOR LOSS
Illinois Policy Institute/
Brad Weisenstein
Two-thirds
of voters polled favored a “fair tax” in March. On Election Day that
flipped to 55% opposing it. Voters understood how the amendment could
usher in retirement and other taxes, but tax proponents found it easier
to claim deceit. |
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“Fair tax” backers admitted defeat, but quickly blamed voters
for being duped, again tried to create class divisions and still blamed former
Gov. Bruce Rauner’s four years rather than House Speaker Mike Madigan’s 35
years.
“We are undoubtedly disappointed with this result but are proud of the millions
of Illinoisans who cast their ballots in support of tax fairness in this
election,” read a statement from Vote Yes For Fairness Chairman Quentin Fulks.
The “fair tax,” which would have allowed state lawmakers to divide taxpayers
into smaller groups and tax as they saw fit, was defeated 55% to 45% with about
98% of the votes counted. The Illinois State Board of Elections reported another
300,000 to 400,000 mail-in ballots may remain to be counted, but the margin had
the pro-tax group funded by $58 million from Gov. J.B. Pritzker conceding and
blaming others.
“Illinois is in a massive budget crisis due to years of a tax system that has
protected millionaires and billionaires at the expense of our working families,
a crisis that was only made worse by the Coronavirus pandemic,” Fulks stated.
“Republican legislators and their billionaire allies who brought us the
dysfunction and pain of the Rauner years continue to stand in the way of common
sense solutions, choosing instead to play partisan games and deceive the working
families of our state. Now lawmakers must address a multi-billion dollar budget
gap without the ability to ask the wealthy to pay their fair share. Fair Tax
opponents must answer for whatever comes next.”
Illinois lawmakers are now faced with a choice: Continue cutting core services
for Illinoisans in need, or address skyrocketing public pension costs crowding
those services out of the state budget.
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The choice should be simple: public pension reform.
Illinoisans already shoulder the nation’s highest
state and local tax burden, driven largely by pension spending that
has grown 500% since 2000 and is crowding out social services and
law enforcement spending, as well as consuming significant amounts
of education dollars. Pritzker’s plan to add $3 billion in new
taxation through his “fair tax” did next to nothing to address the
nation’s largest pension debt – $261 billion by one estimate. He
only discussed using $200 million of the tax for pensions.
Illinois needs a constitutional amendment to change its state
pension systems, which now eat more than 25% of the state budget.
The idea was supported by a majority of Illinois voters polled in
March.
Currently state retirees receive 3% compounding raises every year,
regardless of the inflation rate or taxpayers’ ability to pay.
Replacing those raises with true cost-of-living adjustments would
fully fund the state’s pension systems, which now average only 40%
of what they must eventually pay out.
Illinois would be able to keep its promise to retirees without
bankrupting itself or taxpayers. It could do so without the 20%
income tax hike Pritzker threatened if his “fair tax” failed.
With FBI agents circling the Statehouse, it is time to lay blame on
Illinois’ power structure that led to the fiscal mess rather than
voters or the rich or Rauner. It’s time for reforms, starting with
public pension reform.
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