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Study shows tax fairness would generate billions for Illinois

A new report on tax fairness by Keystone Research Center and Good Jobs First shows that Illinois could generate up to $8.6 billion in revenue simply by fixing inequities in our state tax code.

According to the study, if Illinois taxed the top 1% of taxpayers (with incomes averaging $1.37 million) at the same rate as we tax the middle 20%, we could raise $5.1 billion per year. Or, if the top 20% of earners paid the same rate as the middle 20%, we could generate $8.6 billion per year.

The IFT has repeatedly called for a fix to the state’s tax inequities. Most recently, our union and other education advocates called on state legislators to support House Joint Resolution Constitutional Amendment 26, a proposal that would require a 3 percent surcharge on income over $1 million to direct needed additional funding for K-12 schools. In November, Illinois voters overwhelmingly approved that Millionaire’s Tax proposal.

Instead of asking millionaire’s to pay their fair share, Governor Rauner has proposed unconscionable cuts to social services to pay for tax breaks for corporations and the very wealthy.

A recent study by the CTBA shows that the wealthiest Illinoisans (the top 11% of earners) are also benefiting from the recent expiration of the state's temporary income tax increase, which was allowed to expire in January and is dramatically worsening the state’s fiscal crisis.

Read the complete Keystone report here.




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