Ralph Martire is once again figuring out methods to take more tax dollars from Illinois residents. Obviously, the recent 67% state income tax increase, going primarily to the pension systems, wasn’t enough for spenders like Martire.
The Center for Tax and Budget Accountability (CTBA), an oxymoron if there ever was one, is led by Mr. Martire of HB750 fame, traveling around the state for additional education funding through a tax swap that actually raised taxes by $4B to $6B dollars – the only thing Martire’s plan swapped was money from our wallets to the state coffers.
The CTBA may be a non-profit think tank, but there is nothing bipartisan about the organization, and its advocacy is a total tax restructure in the State of Illinois!
This restructure not only included the recent 67% state income tax increase, or the current graduated income tax discussion to finance the state’s structural deficit (spending more than existing revenue), but the CTBA has also advocated taxing retirement income for the first time in Illinois history for those making above a certain amount .
Illinois lawmakers, who can’t even manage to fund the state’s public pensions, are now considering taking $1B from retirees who did manage to fund their retirement pensions!
Martire must have attended the Obama’s School of Class Envy when he stated that a graduated or progressive tax would restore fairness and give the state money to pay its bills by taking even more tax dollars from those who have succeeded in the workplace.
Martire says that the graduated tax is based on a person’s ability to pay. With the current system – a 5% flat tax – a taxpayer with double the income, pays double the taxes. What is unfair about that? Tax credits should be available for low incomes, and then the rest is taxed.
Martire says his plan will stimulate the economy and create 36,000 jobs because there will be more public and consumer spending.
How does the government create more jobs by taking money from taxpayers that would have been spent by the taxpayer anyway? What kind of economic double talk is that?
The previous week, the Rockford Register Star published a guest column by Lawrence J. McQuillan, PhD, chief economist at the Illinois Policy Institute, trashing the graduated tax plan. It’s required reading on this topic of graduated taxes!
Don’t be fooled by the propaganda. A progressive income tax will mean higher taxes for the middle class. Illinois should soundly reject the progressive tax.
Progressive tax supporters claim they “only want the rich to pay their fair share.” But the experience of other states proves that the middle class will pay more, too.
Currently, 34 states have a progressive income tax. In 24 of these states, a family of four with taxable income of $50,000 is taxed at a higher rate than in Illinois.
California is the canary in the coal mine. It has shown that progressivity means ever-higher taxes for the middle class and ever-higher state spending with endless deficits.
The graduated tax will bring in more money, but that doesn’t ensure that the state will not simply increase their spending and need even more money in the future. Progressives, like Ralph Martire, have an insatiable appetite for more state spending.
Progressives do not believe that the state can grow it way out of its addiction for more spending, so must always find ways to increase revenue – and the progressive tax punishes those for having succeeded in our workforce.