The credit rating agency also said Illinois will soon pass the point of no return on public pension debt. It warned against schemes to stretch or delay pension payments.
A typical Chicago homeowner faces up to $255 in potential property tax increases to cover city and school deficits. City income taxes could be next, if the ‘fair tax’ were to pass.
Multiple members of the governor’s inner circle have publicly backed retirement taxes, even though Pritzker now denies he will use his “fair tax” on the state’s seniors.
“Small businesses are hurt. A lot of people can't find jobs. Raising [taxes] is unwise with what's happened with the economy.”
“The real issue is the state needs revenue because it refuses to deal with its debt. Voting yes won’t solve the state’s debt or spending problem.”
The blue pamphlets sent to Illinois voters were mandated by law, but the constitutional amendment explanation inside included misleading language in its favor.
The amendment’s ballot language misleads voters about what a graduated income tax would do if passed Nov. 3 in Illinois.
Vote Yes for Fairness misled Illinois voters by running ads based on a fake Twitter account. Gov. J.B. Pritzker almost single-handedly is funding the group.
Illinois would have lost an additional 10,577 seniors from 2012 to 2018 if outmigration were as severe as in Connecticut, the last state to enact a progressive income tax.
A credit rating agency found Gov. J.B. Pritzker’s ‘fair tax’ would fail to close the state’s deficit or adequately fund essential services.
Combined state and federal income taxes would have small businesses pay more than 50% of their top-end income in taxes.
Taxing retirement income is not a new idea to Illinois politicians, but denying they want to tax seniors is new since that part of the “fair tax” plan slipped out.
“The real damage is going to be farther down the road. How could there not be further tax hikes down the road, when you look at how deep the state is in the hole already?”
Evidence from Connecticut suggests the progressive income tax could cost Illinois homeowners substantial equity in their homes.