Tuesday, July 7, 2020

If enacted, it will be the final nail in the coffin of the Illinois economy

Taxing messages: Opposing sides in graduated income tax battle move to captivate captive audience
With the COVID-19 pandemic grinding much of everyday life to a halt, the groups have the benefit of reaching out to taxpayers in an unprecedented setting that has millions of people working from home and glued to their screens. 

By Tina Sfondeles Jul 7, 2020, 5:00am CDT

Gov. J.B. Pritzker, left, gives his daily update on the coronavirus in March; Todd Maisch, president and CEO of the Illinois Chamber of Commerce, right. Tyler LaRiviere/Sun-Times file; www.ilchamber.org.

Bankrolled by an astounding $51.5 million contribution from Gov. J.B. Pritzker, a committee pushing a graduated income tax ballot initiative launched a series of digital ads on Tuesday — just as an opposing group announced grassroots efforts to fight the tax change that would pound high-income earners in the state.

The high-stakes awareness campaigns come four months before voters will decide whether the state changes its income tax rates to more heavily tax those who make over $250,000.

To Pritzker, a billionaire whose own income will be impacted by a change in the income tax structure, the progressive income tax has been a focal point since even before he took office.

To the business community and to millionaires and Pritzker’s fellow billionaires in the state, a bump in the tax rate will take up a big chunk of their earnings. And that personal financial hit is worth fighting against.

They also claim there’s no reason to trust Democrats with tax changes, arguing the proposal opens the door to further upticks to pay off the state’s massive debts.

The messaging isn’t as simple as one would think. Voters are typically leery of tax changes and math questions on a ballot — even if 97% of taxpayers will see either no change to their taxes or a slight dip, according to Pritzker and the pro-”Fair Tax” group.

Gov. J.B. Pritzker unveils his graduated income tax plan last year. Justin L. Fowler/The State Journal-Register via AP
With the COVID-19 pandemic grinding much of everyday life to a halt in 2020, the groups have the benefit of reaching out to taxpayers via television and Internet ads in an unprecedented setting that has millions of people working from home and glued to their screens.

Via Facebook, Hulu, YouTube and several news sites, Vote Yes for Fairness is launching seven digital ads on Tuesday. Most are short and to the point, arguing that the tax change is “fair” and will help 97% of taxpayers. One 15-second ad specifically speaks to essential workers: “It’s not fair to force our essential workers to pay the same tax rate as millionaires and billionaires,” the ad reads.

Under the proposed change, incomes between $250,000 and $500,000 would be taxed 7.75%. It would maintain the current tax rate of 4.95% on incomes between $100,000 and $250,000. Income from $500,000 to $1 million would be taxed 7.85%, while income over $1 million would be taxed 7.99%. For those earning incomes of $100,000 or less, the rate would dip down to 4.9%.

Why would any responsible businessperson launch their business here when Wisconsin, Indiana, Tennessee and Ohio beckons with lower taxes? Why don't the Democrats understand this?

7 comments:

  1. Anonymous7/07/2020

    Good
    Illinois in great shape to recover quickly.

    ReplyDelete
  2. Anonymous7/07/2020

    I'm not sure about the other states, but Wisconsin has a graduated income tax. It is also far from being a low tax state. In Wisconsin you pay sales tax on labor and services as well. If you have a car repair bill for instance one pays sales tax on the entire bill which includes labor. The same goes for haircuts, dry cleaning and so on and so forth.

    ReplyDelete
  3. Anonymous7/07/2020

    It's a day declared by organizers and activists as the time to send a message nationwide.

    Tuesday, July 8 is "Whiteout Day"- where White people are encouraged to spend money at only White-owned businesses and boycott other bigger retailers.

    The boycott is meant to be an economical protest against abuse of the police and racial injustice in America.

    ReplyDelete
  4. Anonymous7/07/2020

    Lightfoot is the final nail in the coffin for the IL economy!

    ReplyDelete
  5. Anonymous7/08/2020

    Pensions and retirement income have a big bullseye on them expect the state to start taxing them if this passes. Next they will tax your pension at the source if it comes from an Illinois based entity, so moving out of state won't help. Don't think it can happen, well if you live in Indiana and work in Illinois you pay Illinois income tax already. Go here for a little insight https://www.illinoispolicy.org/every-state-with-a-progressive-tax-also-taxes-retirement-income/

    ReplyDelete
    Replies
    1. Anonymous7/08/2020

      Again. Federal law explicitly forbids the taxing of pensions earned in one state by that state, when residing in another state.

      Delete
  6. Anonymous7/08/2020

    https://www.illinoispolicy.org/u-s-rep-cheri-bustos-d-east-moline-joined-rockford-area-officials-on-thursday-in-a-virtual-news-conference-to-tout-a-1-5-trillion-infrastructure-bill-that-would-invest-in-broadband-water-infrast/

    ReplyDelete