HR1025 100TH GENERAL ASSEMBLY

HR1025 LRB100 21558 MST 39294 r

HOUSE RESOLUTION

WHEREAS, Because Illinois has a flat income tax, low and middle-class families disproportionately share the burden of funding the State's responsibilities; the combined effect of all state and local taxes causes hardworking people with lower incomes and struggling small business owners to pay a higher portion of their income in taxes than wealthy households and large corporations; a graduated income tax is a more fair and progressive way for the State to generate revenue; and

WHEREAS, According to the Institute on Taxation and Economic Policy, Illinois has one of the most regressive tax structures in the country, as households in the bottom 20% of annual income pay 13.28% of their income in taxes, while those in the top 1% pay only 6.81%; and

WHEREAS, A progressive income tax will stimulate small business growth; a smaller tax burden will be placed upon small businesses, thereby giving them the additional resources needed to reinvest in their businesses and ultimately increase their net income, providing further stimulus for small business formation and growth; and

WHEREAS, A progressive income tax will create additional macroeconomic benefits for the State, as Illinoisans with smaller tax burdens find themselves with additional purchasing power; this translates into higher revenues for Illinois businesses and more robust economic performance for the State as a whole; and

WHEREAS, Of the 41 states in the country with an income tax, 33 have progressive rate structures, including most of the states that border Illinois - Iowa, Kentucky, Missouri, and Wisconsin; furthermore, Indiana, Iowa, Kentucky, and Missouri all have locally-imposed income taxes; and

WHEREAS, Opposition to a progressive income tax fails to recognize the ability to reduce the tax burden for the vast majority of taxpayers; this opposition stems from a desire to protect the status quo for the wealthiest members of society; and

WHEREAS, House Resolution 975 of the 100th General Assembly provides examples of punitive tax rate structures designed to derail discussions about a fair and progressive income tax; such tactics are commonly used by Republican politicians to protect the ultra-wealthy from paying their fair share; and

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 without a full state budget, forced upon Illinoisans by Governor Rauner, have resulted in uncertainty and hardships for the citizens and businesses of Illinois; and

WHEREAS, In spite of the recent, successful bipartisan efforts to enact a full state budget for Fiscal Year 2018, ending the worst budget crisis in the history of Illinois, the State still faces significant financial challenges that cause continued uncertainty regarding the State's ability to provide for the services upon which Illinoisans rely; 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 progressive income tax to be adopted in this State must be granted due consideration as a means of reducing the tax burden on low and middle-income families while providing resources for education, infrastructure, supports for our most vulnerable citizens, and other core responsibilities; 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 support of a fair and progressive income tax that must reduce taxes on low and middle-income families while raising taxes on the wealthiest Illinoisans; 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.