HR0975 100TH GENERAL ASSEMBLY

HR0975 LRB100 21483 MST 38266 r

HOUSE RESOLUTION

WHEREAS, The State of Illinois is the 6th most populous state in the country; it is home to world-class cities, enriched communities, renowned tourist destinations, and is a leader in many areas including transportation, technology, finance, manufacturing, agriculture, and, most importantly, access to an unrivaled labor force; and

WHEREAS, There are many positive aspects of this State that should be applauded and highlighted, unfortunately, we find ourselves at a true crossroads; years of fiscal irresponsibility and political malfeasance have resulted in an undesirable state of affairs that has plagued and will continue to loom over the Land of Lincoln; and

WHEREAS, Based on 2015 American Community Survey (ACS) data collected by the U.S. Census Bureau, Illinois experienced a 3.7% increase when comparing the median household income reported in the 2014 ACS ($57,478) and the 2015 ACS ($59,588); the 3.7% increase was just under the U.S. average of 3.8%; moreover, the states of Missouri and Wisconsin witnessed more substantial increases; and

WHEREAS, Illinois has to move towards a future that seeks and expects to be competitive in all sectors; that is what every State across America is doing in order to embolden their residents and, furthermore, attract the best and brightest employees and employers; and

WHEREAS, It is with this reality in mind that Illinois lawmakers now more than ever must act in order to ensure that the best days for Illinoisans are ahead of us; the time of kicking the can down the road and blatant inaction and disregard is over; Illinois must unequivocally reinforce the notion, not only to every resident but to any person that may wish to come to the Prairie State, that Illinois is truly forward-looking; and

WHEREAS, There is no greater threat to Illinoisans currently than that of continuing down the trajectory that we are on today; through years of laxity, unchecked spending, and ever-growing means of overtaxation, Illinois residents are being subjected to incredible pressures to leave their homes and relocate elsewhere; and

WHEREAS, Illinois has among some of the highest tax burdens of any state not only in the Midwest, but in the country; Illinois has one of the highest average property tax burdens in the United States; Illinois residents are charged one of the highest average combined State and local sales taxes; if this were not enough, Illinois has estate, corporate franchise, and numerous other State and local taxes that make taxpayers reasonably question what Springfield is doing right; and

WHEREAS, The Tax Foundation's State Business Tax Climate Index for 2018 ranked Illinois 29th on its yearly report that compares the states' tax systems; comparatively, Indiana was ranked 9th, Michigan was ranked 12th, and Missouri came in at 16th most favorable; and

WHEREAS, Things must change for the better through fiscally responsible and sustainable initiatives that foster economic growth and cease to be an over-encumbrance on Illinois taxpayers; this is why proposals such as those calling for a graduated income tax to be adopted in this State must be denied outright; and

WHEREAS, The Federation of Tax Administrators found in data compiled for their 2015 state and local revenues comparison that, per capita, the average taxpayer paid a total of $5,751 in state and local taxes, the 12th highest in the country; when comparing this amount to the percentage of an average taxpayer's income (11.7%), Illinois came in 8th highest in the country; comparatively, not one of our neighbor states (i.e., Indiana, Iowa, Kentucky, Michigan, or Missouri) landed in the top 15; and

WHEREAS, To continue on this senseless path of overburdening and debilitating propositions of increased taxation and reckless spending is simply unconscionable; proponents of a graduated income tax offer that this is a "fair" treatment of taxpayers, yet this is far from the truth; and

WHEREAS, Studies have shown that states with graduated income taxes impose an increased burden on the middle-class; this venture, instead of creating fairness, exasperates the tax base; and

WHEREAS, States that impose graduated income tax rates, which vary in application but number 33 in all, present a troublesome case for their residents, and would, undoubtedly, present an equally problematic case here in Illinois; looking at California, for example, which has one of the most so-called progressive income tax bracket systems, with a base rate of 1% and a top marginal rate of 13.3%, an Illinois taxpayer that is earning a median household income of approximately $59,000 would be subject to a 9.3% income tax rate under the Golden State's model - nearly doubling the current Illinois tax; using the New York tax structure, the Illinois taxpayer would be subject to a 6.33% state tax rate; using the New Jersey model, that same Illinois taxpayer would be subjected to a 5.525% income tax rate; and

WHEREAS, Graduated income taxes only create added burdens and dissuade economic prosperity, two unintended consequences that proponents of enacting such a tax system fail to mention; organizations including the Civic Federation and Taxpayers' Federation of Illinois have provided detailed analyses of hypothetical scenarios where Illinois would impose such a tax; these figures might please proponents that only focus on increasing revenues, but it must be noted that there will be a cost to such a proposal that one group, Illinois families, will have to pay for; and

WHEREAS, National organizations, such as the Hoover Institution, have outlined the gross inadequacies of the graduated income tax system; while it may appear to provide equity, the so-called progressive income tax punishes hard-working, middle-class families, as they make up the majority of the tax base; there is nothing fair in making average Illinoisans pay for the shortcomings of a legislature that has created a tax and spend paradigm that is unsustainable; and

WHEREAS, Proposals calling for a graduated income tax introduced in recent years in the legislature have failed to even begin the discussion because legislators and proponents alike realize that such an initiative would lead to irreparable damage that would only serve to further impair the economic outlook of Illinois; and

WHEREAS, A move to amend the constitution to allow for such a repugnant affront to Illinois families would be an act of utter insult to Illinois taxpayers and a dereliction of the duty owed to taxpayers by members of the legislative branch of government, a body that is supposed to improve the general welfare and protect the best interests of all Illinoisans; nothing about creating an unfair, unequal, and avaricious tax system helps the General Assembly accomplish these ends; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we stand united in opposition to any measure that would allow the creation of a graduated income tax on Illinois residents; and be it further

RESOLVED, That suitable copies of this resolution be delivered to each member of the Illinois General Assembly and the Office of the Governor as a testament to our unwavering commitment to improving the day-to-day lives of families across this great State.