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Illinois Fair Tax Vs. Flat Tax: Five Benefits Of Passing The Fair Tax

Written by Ken Gaebler
Published: 9/1/2020

Illinois should amend its constitution to get rid of the flat tax and embrace the new Illinois Fair Tax. We explain why and discuss five key benefits of passing the Fair Tax.

We're in favor of the Illinois Fair Tax because it's good for Illinois business owners, and because it's the right thing to do.

Benefits of the Illinois Fair Tax

But don't just take our word for it.

The Project for Middle Class Renewal (PMCR) at the University of Illinois at Urbana-Champaign and the Illinois Economic Policy Institute (ILEPI) jointly evaluated the effects of a graduated income tax, also known as a "Fair Tax."

Their analysis of Illinois Department of Revenue data revealed that an Illinois Fair Tax could accomplish five important policy goals:

  • Illinois could cut income taxes for at least two-thirds of taxpayers. Between 67 percent and 97 percent of all residents would receive tax cuts in a well-designed progressive income tax. These working-class and middle-class tax cuts would be paid for entirely by higher taxes on the top 1 percent of families.
  • Illinois could cut residential property taxes by about 10 percent. An Illinois Fair Tax would provide the revenue necessary for the State of Illinois to boost K-12 public education funding by $2.5 billion, allowing local governments to deliver property tax relief for homeowners.
  • Illinois could protect small businesses. A well-designed tax could limit the tax rate on pass-through business entities at 5 percent, effectively holding small businesses harmless.
  • Illinois could balance the budget and restore investor confidence. An Illinois Fair Tax would allow lawmakers to eliminate the underlying $1.2 billion structural deficit. If Illinois were to adopt an Illinois Fair Tax, the state could conservatively generate $3 billion to $5 billion in new revenue.
  • Illinois could grow the economy by increasing investments and boosting consumer demand. The state could increase investments in public education and critical infrastructure systems. A progressive income tax could grow the Illinois economy by between $1 billion and $8 billion annually.

Their study further concluded that "A progressive income tax would transform Illinois' tax code by bringing middle-class tax burdens down towards rates in neighboring states. Moving to a graduated-rate structure could make the state's tax code fairer, cut income taxes for working-class and middle-class families, provide opportunities for property tax relief, help balance the budget, and provide revenue to fund essential public services that contribute to the growth of the Illinois economy."

The people who are against the Illinois Fair Tax apparently don't want all these good things for Illinois. It seems that the opposition doesn't have Illinois' best interests at heart.

This nonpartisan analysis of the data shows, without a doubt, that Illinois needs the Illinois Fair Tax.

It's good for Illinois businesses, it's good for Illinois citizens, and it's good for Illinois souls as well, because the current Illinois flat tax is a racist tax structure that punishes people of color to benefit the wealthy. More on that later, but, for now, trust me that it is true.

We are better than that, Illinois. Vote Yes in November.

Related Articles

Deciding on how to vote onthe Illinois Fair Tax? If so, here are some additional resources:

Illinois Fair Tax Impact on Businesses
Plan to Ditch Flat Tax Is Right for Illinois
Is the Illinois Tax System Racist?
Fighting for a Better Illinois Tax System
Illinois Fair Tax Is Not a Tax on Success
Essential Workers Need the Illinois Fair Tax

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