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Originally Posted by Stockerzzz
It's important to understand why we're raising $3.4 billion in new taxes. What is this being used to pay for?
Only $200 million is for pension debt. I've heard the majority is for Pritzker's Medicaid Public Option. Does Illinois need new spending programs at this point?
It's a Blank Check Amendment. We don't know what we're spending the money on.
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Pritzker has said and it has been widely reported that the income tax change is in order to fix the structural budget deficit of around $3 billion annually.
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A fair tax system will allow us to eliminate the structural deficit that has plagued our state for nearly two decades.
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I would have personally much preferred using the marijuana legalization and gambling expansion to cover the deficit (along with some targeted budget cuts), but he did campaign on this exact plan and won in a landslide.
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Originally Posted by Stockerzzz
We don't know how long the initial rates will be in effect.
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Again, no different than today. If Democrats want to increase it, they would first have to get the votes to actually do it. Keep in mind that it will be hard to convince the Dems in Lake and DuPage counties to go along. And if they do manage to pass the bill, Republicans will have ripe material for the next election and can present their plan to fix things without increasing the tax. It only becomes a "blank check" if they do actually increase it and Republicans can't present a better plan to voters.
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Originally Posted by Stockerzzz
It's not needed. Illinois is one of five states that doesn't tax retirement income. Taxing retirement income over $100k is a no-brainer. We could also tax services.
We don't need to give Illinois politicians a Blank Check.
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Taxing retirement income and adding sales tax to services is absolutely the better answer. Those things plus an amendment changing the automatic annual pension increases from 3% down to 2.5% would fix our state's finances immediately.
To be honest making a truly progressive tax would be preferable for me (but wouldn't raise enough money). I'm talking something that gives a real cut to the working class. Something like:
3% on income up to $75k
5% on income from $75k to $400K
7% on income over $400k