Illinois presently has a 4.95% "Flat Rate" income tax.
In the November 2020 election, Illinois voters will be asked to approve a new "Progressive" income tax. A "progressive income tax" is a "graduated income tax," as opposed to a "flat rate tax." Our Democrat Governor and his Democrat cronies in the legislature call their new "graduated income tax" a "Fair Tax" to gull the gullible.
But what is a "Fair Tax?" This "Fair Tax" is any "graduated income" tax at whatever rates the legislature hereafter approves and the governor signs.
Here's how the con works. Your Democrat Legislature, at the request of Democrat Governor Pritzker, has by law already set the "graduated income tax rates" which will take effect as soon as the voters approve amending the Illinois Constitution to permit their "Fair Tax." Those rates are a scam.
To induce the gullible to approves their "Fair ("graduated") Income Tax" referendum, the Democrats in the Legislature have set the following rates:
For single or joint filers with incomes up to $10,000, the rate will be 4.75%. (Present "Flat Tax" rate: 4.95%.) If your income is $10K, your tax savings will be $20.
For single or joint filers with incomes over $10,000 and up to $100,000, the rate will be 4.90%. On $100K, you'd save $50.
For single or joint filers with incomes $100,000 and up to $250,000. the rate will be 4.95%.Your tax savings will be $0.
The rate increases to 7.75% if you file single and have an income over $250K up to $350K; or if you file jointly, and your income is over $250K and up to $500K.
The rate increases to 7.85% if you file single and have an income over $350K up to $750K; or if you file jointly, and your income is over $500K and up to $1M..
The rate increases to 7.99% if you file single and have an income over $750K; or if you file jointly, and your income is over $1M.
So, if your income is not greater than $250,000, you may ask what's so bad about ole Pritzker's "Fair Tax?"
Imagine that you are in the market for a new home. You find one you really like. The "asking price" for the house is$150,000. You arrive at closing, but a hitch develops:
Seller. Oh, by the way, the "asking price" was only my "asking price;" it is not my "final price."
You. What? Well, what is your final price?
Seller. I can only give you a "ball park" price now. Sign the papers, and I'll give you the "final price" maybe a month from now.
Would you sign the closing papers and agree to buy a house without knowing the"final price?"
Or would you be a bit wary that the seller might be engaging in the old "bait and switch?" Recall the "asking price" was $150,000? Would you sign the papers in blank trusting that his "final price"would not be $300,000? $500,000?
If you put a new furnace in your home, would you make a check out to "Harry's Furnace Service," sign your name and tell Harry, "Just put in whatever amount you feel is fair."
Now why am I giving examples of "bait and switch?
Right now - unless you approve the November referendum - the Democrats in the Illinois legislature cannot impose any "graduated" or "progressive" income tax. To get power to impose their "Fair ("graduated") Tax," the Democrats in the Legislature need you to approve their referendum. Approval requires either the approval of 60% of voters voting on the question, or greater than 50% approval from all voters who cast ballots in the election.
Once you have approved their referendum, you have given them a "blank check."Stuck your head in the lion's mouth. Opened the gates of Troy and welcomed in the Trojan Horse with rapacious Greeks lurking in its belly.
Once you hand Democrats the Constitutional power to impose a "graduated" or "progressive" income tax, they can change the rate at their will. The day after you approve the Constitutional Amendment authorizing a "Graduated Income Tax," the Democrat legislators can go back into session and double, triple or quadruple the rates. You are giving them a "blank check" to insert whatever rates they want.
If you don't think Democrats will raise the rate whenever they think they need more money, think again. Look what happened after the 16th Amendment to the U.S. Constitution was passed authorizing the Federal Graduated Income Tax. In 1913, the bottom bracket paid 1%; the top, 7%. Today, Federal rates range from 10% to 37%! During WWII, the top bracket was 90%.
I don't mention Republicans because the are a virtually extinct species in Springfield.
Published in the Moline Dispatch and Rock Island Argus on February 14, 2020
Copyright 2020, John Donald O'Shea
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