The small relief in the first year for Madison and St. Clair counties would be short, as the growth in property taxes would quickly consume their income tax cut.
These estimates also assume that Pritzker’s proposed rate structure won’t change, despite the governor’s promises that the progressive income tax would be able to close the budget deficit ($3.3 billion), pay off the bill backlog ($8 billion), solve the state’s pension crisis ($134 billion) and pay for billions in additional spending. If the governor is serious about using the progressive income tax to tackle Illinois’ debt and raise spending for new and expanded programs, annual spending would increase by up to $19 billion and taxes would likely have to be hiked on all Illinoisans, with the median income family facing a $3,500 tax hike.
Instead of turning to taxpayers for more money, the governor should push for structural reforms to the state’s largest cost drivers. Without those reforms, a progressive income tax will not provide property tax relief, and will lead to even higher middle-class income taxes. |