Fair Tax Now!

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3 Questions about a Fair Tax in Illinois

What’s a Fair Tax?

A Fair tax is an income tax in which families with lower incomes pay lower rates and families with higher incomes pays higher rates.

97% of Illinois families – including those making up to $250,000 – will get a tax cut under Governor Pritzker’s Fair Tax rate plan.

SEIU Healthcare members believe in quality care and quality jobs for all. The Fair Tax plan would provide $3.4 billion per year in additional revenue to fund vital state services, moving us closer to that goal.

The Fair Tax “could narrow Illinois’ growing income disparity, cut property—as well as income—tax bills and deliver billions of dollars in extra annual revenue to combat state deficits and underfunded public schools and infrastructure” according a study highlighted in the Associated Press.

Illinois’ Current Flat Income Tax is Unjust and Unusual

A minimum wage worker shouldn’t have to pay more taxes than a millionaire.  In Illinois, when factoring in all local, state, and federal taxes a minimum wage worker actually PAY MORE as a percentage of his or her income than a millionaire.

Currently, everyone in Illinois pays the same income tax rate, regardless of their income. This is fundamentally unfair because when other taxes such as sales taxes are added, middle and working-class families pay significantly more in taxes as a percent of their income than the wealthy.

Illinois ranks as the eighth-most-regressive taxing state in the nation, meaning it is among the worst offenders of state tax systems that make incomes more unequal after taxes than before.

Income inequality is getting worse in Illinois – and the racial wealth gap needs to be addressed.

The bottom 20 percent of Illinois residents pay more in total state and local taxes as a share of their income than any other Midwestern State.

ITEP IL Rate Bar Chart

Illinois is one of only nine states in the U.S. that has a flat income tax structure and is one of only four states that constitutionally requires a flat income tax.

IL Unique Flat Tax

97% of Illinois Families Get a Tax Cut

97% of Illinois families – including those making up to $250,000 – will get a tax cut under Governor Pritzker’s Fair Tax rate plan.

Example: A single parent with two kids working full time at $12 an hour will get a $225 tax cut.

Millionaires will start paying their fair share.

Example: A millionaire would pay an $21,435 more in taxes.

What’s the Fair Tax mean for your wallet?

Click on the graphic below to find out (or click here).

Fair Tax Calculator

A Fair Tax Means Quality Care and Quality Jobs

SEIU Healthcare members believe in quality care and quality jobs for all.  We know that when families have quality care and quality jobs, then families can enjoy freedom and dignity. The Fair Tax plan would provide $3.4 billion per year in additional revenue to fund vital state services, moving us closer to that goal.

There are gender and pay disparities in Illinois and throughout the country.

• Women are paid at least 20% less than men
• African-American women are paid about 37% less than white men
• Latinas are paid about 45% less than white men

Pritzker Fair Tax plan will provide additional revenue to fund vital state services so we can correct these injustices.

Below are examples of how revenue from the Fair Tax could be used:

  • Home Care
    • All home care aides and DORS personal assistant could receive paid time off (i.e. vacation days) and get $15 an hour ($374 million)
    •  100,000 more seniors could be served by the Community Care Program, almost doubling its size ($1.1 billion)
  • Child Care
    • 100,000 more children could receive affordable child care through CCAP ($630 million)
  • Hospitals
    • 1 million more patients could receive charity care ($805 million)
    • Safety net hospitals could receive more robust funding ($50 million > per safety net = $1 billion)
  • Nursing Homes
    • Safe Staffing: allow for every CNA in the state to have a 1 to 5 resident ratio at all times($980 million)

RELATED

Speaking as a millionaire, it’s only fair that I pay taxes at a higher rate 

Fair Tax #HCIITalks LiveStream Draws 1,500 viewers

Statement from President Greg Kelley: Fair Tax Amendment Will Allow Much-Needed Change to Illinois Tax Rate

 

 

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