Support the ‘Pritzker Tax?’ This one’s for you
Closing arguments: Part Two
Editor’s note: In this series, the Tribune Editorial Board offers its closing arguments against a proposed constitutional amendment that would replace Illinois’ flat-rate income tax with graduated rates.
When we present arguments against a graduated income tax — a referendum will be at the top of the November ballot for voters to decide — we hope to convince those of you on the fence. Regular readers of the Tribune editorial page already are familiar with our fiscal policy recommendations and frustration with politicians who have failed for decades to straighten out this state’s spiraling financial mess.
In our view, switching from a constitutionally protected flat tax to a graduated income tax would allow Illinois politicians to tinker with rates — to extract more money from hardworking taxpayers — without forcing them, the politicians, to do the hard work of streamlining government, cutting spending and eliminating the structural deficit that has made this state a deadbeat for more than a decade. It is beyond irresponsible that the state can’t pay for services for its most vulnerable, can’t pay its bills on time and has a credit rating near junk status.
Other states with graduated income tax rates that are running smoothly are running smoothly because they are well-run states — not because of the “magic” of a graduated tax structure.
That’s our take. But to readers undecided, and even for those of you who plan to vote in favor of the graduated tax amendment, give us a shot at trying to change your minds. Unlocking the Illinois Constitution’s flat rate is the wrong path toward a healthy Illinois, which is the outcome we all, regardless of party or politics, want to see. We all strive for the revival of the great state of Illinois. But this is not the way to do it.
Illinois elected officials need to be responsible stewards of the people’s money: Pay the state’s bills on time. Respect taxpayers by spending frugally. Reduce the size and scope of government by focusing on essential services. Offer voters a chance to vote on term limits, redistricting reform and a pension amendment.
Yet our leaders have blocked those movements. Instead, they have snookered taxpayers with broken promises. Both Democrats and Republicans have done this. And it is precisely why voters, regardless of party, have little reason to trust Springfield now.
Still need convincing? The trail of broken promises includes:
■ “Illinois tollways will be freeways by 1973.” Promised conversion dates varied, but it never happened.
■ “The Illinois Lottery, authorized in 1973, will be a new revenue stream to fund schools.” Didn’t happen. Instead, in a shell game, lottery proceeds got dumped into the state’s main checking account to be spent on anything.
■ “The 1989 income tax surcharge is just temporary.” Not true. It was made permanent in 1993.
■ “Pensions are getting fixed.” Gov. Jim Edgar in 1994 signed into law a plan to address a $15 billion unfunded pension liability that Edgar called “a time bomb.” Then lawmakers and future governors approved pension holidays and spent money that should have gone toward pensions on other things. Taxpayers’ unfunded liability now exceeds $137 billion.
■ “Let us help you save for college.” The College Illinois program Speaker Michael Madigan helped pass in 1997 was guaranteed to pay for itself, they told us. Didn’t happen. It’s unfunded liability, now on the backs of taxpayers, is $501 million.
■ “I will hold the line.” In 2010, Gov. Pat Quinn said he would not permit an individual income tax hike higher than 1%. In January 2011, he signed into law an income tax twice that size.
■ “The tax hike will fix the state.” In 2011, while legislating the 67% increase in the income tax rate, Democrats included a provision that by 2025, the rate would retreat to 3.25%. Democrats also promised that the tax hike would help fix the pension system, eliminate overdue bills, boost Illinois’ economy, create jobs, end annual budget shortfalls and improve state bond ratings. None of that happened.
■ “THIS tax hike will fix the state.” In 2017, lawmakers again said they needed more revenue than the retreating tax rate was providing them. So they raised the personal income tax rate by 32%, to 4.95%. Democratic sponsors said the idea was to start paying down old bills and reducing costs in the pension system. Republicans helped pass the tax hike too, promising property tax relief and job-creating measures to grow Illinois. Did you get property tax relief, voters? Are jobs staying in Illinois? No and no.
These are just some of many examples
of broken promises. Regardless of your politics, your party of choice, your support for Gov. J.B. Pritzker, the facts speak for themselves. The leaders of this state, both parties, have repeatedly pulled a bait-andswitch on taxpayers.
Democrats and those on the fence: You don’t have to tell your precinct captain how you voted. You don’t have to tell your union leader. You can quietly, privately but powerfully, signal to Springfield that things have to change.
It is time for all of us to say, no more. Vote no.
Other states with graduated income tax rates that are running smoothly are running smoothly because they are well-run states — not because of the “magic” of a graduated tax structure.