3/27/2019 10:33:00 AM Governors's tax plan
Recently Gov. J.B. Pritzker proposed a new tax plan that raises taxes on people who earn over $250,000. Immediately the response was that Democrats are raising our taxes again. The truth is that this tax plan will lower the state tax rate for 97 percent of us who earn less than $250,000.
According to the Chicago Tribune: "The governor proposes dropping the tax rate to 4.75 percent for the first $10,000 of income for single and joint filers. The rates would be 4.9 percent for income between $10,000 and $100,000 and 4.95 percent for income between $100,000 and $250,000.
From there, the top rates would jump to 7.75 percent for income between $250,000 and $500,000 and 7.85 percent for income between $500,000 and $1 million."
That means that most of us will see a reduction in the state taxes we pay. The middle class in Illinois will get a break for a change. So, unlike what Sen. Dale Righter says, Illinois families will not have their taxes raised. Right now our state is suffering from a budget crisis. This is a first step in coming to terms with our deficit. Will this solve all our problems? No, but it's a start. We still need to look for other sources of revenues. Consider this, also from the Tribune: "In Iowa, the top rate is 8.53 percent, and it kicks in at $73,710" and "In the Midwest, Minnesota has the highest rate at 9.85 percent." It seems to me that what Pritzker is proposing is fair, and considerate in comparison to what our neighbors are enduring. Remember this tax is only on taxable income.
Some people argue that the millionaires will leave, but as the Chicago Sun Times says, "What's driving them away is not higher income taxes, but poorly funded public schools, inconsistently funded public universities, low wages, and a state financial crisis that discourages job-creating businesses from setting up shop or expanding."
Charging millionaires a higher tax than those of us who earn considerably less seems fair, especially since the federal government is making us pay more taxes than those millionaires pay.