I wrote a column a couple of weeks ago about the proposed Illinois Fair Tax, on the ballot in November. There is an enormous amount of misinformation surrounding this important amendment.
Here are the facts.
The current language in the Illinois Constitution states, “a tax on or measured by income shall be at a non-graduated rate. At any one time there may be no more than one such tax imposed by the State for State purposes on individuals and one such tax so imposed on corporations.”
In other words, no matter what your income happens to be, by law, they must charge the same income tax rate to all.
Many have made the mistake of thinking that under our current system, the rate cannot be changed. It certainly can. From 1990 through 2000, it was only 3%. It is now 4.95%, but the point is that it was always the same for all.
The proposed amendment to the Illinois Constitution, if passed, would say, “The General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the State.”
In other words, they would then have the ability to charge any rate they wanted to any income category. The amendment says nothing about only raising taxes on wealthy individuals.
The actual proposed amendment is NOT on the November ballot. The wording provided on the ballot says that, “it gives the state the ability to impose higher tax rates on those with higher income levels and lower income tax rates on those with middle or lower income levels,”
They are trying to mislead us once again. Instead of telling us the truth, which is that they could then charge any rate to any income class that they want, they mislead saying that it is an income tax hike on the wealthy and a rate reduction on the poor. As anyone can see, the amendment says nothing of the kind. Potentially, it is an income tax hike on everyone.
My point is that currently our income tax system must be the same for all. As such, it is more difficult for legislators to raise the rate on everyone, including the poor and the middle class, unless it is absolutely necessary. This gives our legislators an incentive to not spend money needlessly.
Let me leave you with this.
I was surprised at how many of you sent back messages in favor of the proposed amendment when I wrote the column a couple of weeks ago.
Many touted the fact that most states have a graduated income tax system, and that this is fair based upon a person’s higher income. Others said that I was trying to protect the rich, that this would never affect the middle class.
Every argument presented fell short on one basic fact.
In order for this to work as advertised, our elected officials must be trustworthy.
Before anyone starts thinking that I’m about to jump on any particular political party, please allow me to assure you that I’m referring to both.
As many might remember, Illinois used to be a Republican State. That all changed with the George Ryan phenomenon, when he went up the river for five years on corruption charges. Let’s also remember State Senate Republican Leader Bill Brady who used ethics loopholes to conceal his involvement in a gambling company.
On the other side of the aisle, the Feds have charged two Chicago Alderman, four state legislators, a Commonwealth Edison executive, a CPS Chief of Staff, a suburban mayor, a county highway commissioner, and several others in yet another corruption probe. Also, can anyone forget Blago?
How can any reasonable taxpayer trust these people?
Now that our Governor is feeling some push back on his proposal, what does he do? He sends out a surrogate, his Lt. Governor, to threaten everyone with a 20% tax increase.
When did the governor’s office become the mafia?
When did it become okay for our elected officials to threaten us? When I watched the news coverage, it sounded like a made guy from the old Chicago Outfit threatening to break someone’s legs while trying to collect on the vig.
We don’t elect these people to threaten us. We elect them to protect and represent us.
Do you actually think that these people can be trusted? Please vote no. Your children will thank you.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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