IFT strongly supports the Fair Tax constitutional amendment on the ballot this fall. It will bring fairness to our tax system, stabilize Illinois finances, fund education and vital services, and safeguard pensions.
Opponents have been spreading lies about the Fair Tax affecting retirement income. These opponents, funded by the millionaires and billionaires who don’t want to pay their fair share, are the same people who continually attack unions and public worker pensions.
Here are the facts:
FACT #1:
The Fair Tax DOES NOT tax retirement income.
The Fair Tax Amendment does not create any mechanism to tax retirement income. It only grants the state authority to create fair tax brackets so lower earners pay lower rates and higher earners pay higher rates. Under the Fair Tax, only the 3% of Illinoisans who make over $250,000 would pay more. This DOES NOT include retirement income.
FACT #2:
The Fair Tax DOES NOT create a way to tax retirement income.
Opponents claim the Fair Tax “paves the way” for a tax on retirement income. This is a scare tactic and it is simply NOT TRUE. Nothing in the Fair Tax changes the tax-exempt status of retirement income.
FACT #3:
IFT supports the Fair Tax to ensure the state can fund pensions and protect your retirement security.
IFT and other unions have led the way in fighting off attacks on public employee pensions.
We would never support a Constitutional Amendment or legislation that threatened those benefits.
The Secretary of State recently sent an informational pamphlet about the upcoming vote on Fair Tax. The Secretary of State is required by law to send this information when there is a constitutional amendment on the ballot and to include position statements submitted by supporters and opponents of the measure.
Under Illinois law, the arguments for and against the Fair Tax are drafted by members of the General Assembly.
Secretary of State Jesse White has no control over the content of the arguments and does not vouch for their accuracy or truthfulness.
The arguments against the Fair Tax were submitted by Republicans in the General Assembly who oppose the Fair Tax. They are deliberately misleading and the claim regarding taxation of retirement income is simply FALSE.