Column: The Fair Tax amendment is just that

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That’s “unfair” in just about any reasonable person’s definition of the term.

What the Fair Tax Amendment would allow would be a modest increase in income taxes for those with incomes over $250,000. Meanwhile, at least 97% of Illinois taxpayers would see their income taxes cut or stay the same.

What’s more, with a progressive income tax, because the state will be raising more in income taxes, we can see a reduction in our local property taxes. Why? Well, due to the current flat income tax and lower income tax revenues, the state currently pays only about 27% of our public school costs statewide. Local governments, meanwhile wind up paying about 60% statewide of school expenses — primarily through property taxes. Thus the Fair Tax Amendment can allow property taxes to come down as income tax revenues go up. This will also allow the state to pay closer to what it should be paying for our public schools even as it can provide some property tax relief.

Now, opponents of the Fair Tax Amendment are waving the same bloody shirt they drag out whenever tax reform is proposed. They charge that as soon as the amendment passes, legislators will “bait and switch”, to shift taxes from the wealthy to the middle class. They argue the legislature will “plunder” us all.

Well, it hasn’t worked that way in Iowa, or (at least until recent years) at the federal level. The wealthy pay more, as they should. After all, they can better afford it, and their taxes go to support a system that has allowed wealth to accumulate in the first place.

City: Quad Cities,Feeds,News,QC,Region: QC

via qctimes.com – RSS Results of type article https://ift.tt/2V4BMqN

September 20, 2020 at 02:43AM

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