President Trump’s tax cuts added fuel to the fire on an already solid strong U.S. economy
Most states were raking in billions of revenues due to the hot booming economy
However, a handful of states, especially Illinois, were still running at a deficit due to incompetent politicians and financial mismanagement
Then the COVID-19 Pandemic struck the Nation crippling the booming economy
Illinois, nearly bankruptcy prior to the pandemic, suffered devastating financial losses due to millions of businesses being shut down
In this breaking news article, we will discuss and cover Pritzker Pushing Fair Tax For Illinoisans To Balance Budget Crisis.
Pritzker Pushing Fair Tax And Will Proceed Despite Crippling State Economy
J.B. Pritzker is the billionaire freshman politician who got elected as Illinois’ governor in 2018.
Many Illinoisans had high hopes when Pritzker got elected as their governor
Pritzker is the heir to the Hyatt Hotel Family Dynasty
However, once in office, it seemed like J.B. Pritzker was absolutely clueless about business
He started increasing taxes on over 20 items
Besides raising taxes, he created new taxes
Raising taxes is fine, however, you need to cut spending
The freshman governor increased taxes PLUS increased spending putting the state more in debt
The state’s broken system had a $137 billion shortfall
Pension reform is needed in order to solve the state’s budget deficit
No matter how much the tax hike, the state kept on getting deeper in the hole
The genius idea J.B. Pritzker came out with is changing the state’s flat tax system to a progressive tax
He decided to call it the Fair Tax Plan
The freshman governor signed the state budget and fair tax legislation on June 5th, 2019
The new graduated income tax rates (Pritzker’s so called Fair Tax) would take effect only if Illinois voters approve a change to the Illinois State Constitution.
What Does Pritzker’s Fair Tax Mean?
Illinois currently has a flat tax system. What this means is a set percentage of a taxpayers income is assessed for every taxpayer. However, with Pritzker’s Fair Tax, it is a progressive income tax system that penalizes high wage earners. Pritzker is trying to convince lower and middle income Illinoisans they will pay lower income taxes while high income earners will pay higher income taxes. He is lobbying that changing the state’s flat tax to his fair tax system will solve the financial crisis Illinois is facing. This is misleading and not true.
Now Illinois is about to make a very expensive mistake in ditching its flat income-tax system for what has been called a “fair tax.” Don’t do it. To have any fighting chance of making it out of the coronavirus-induced economic coma it’s currently in, Illinois shouldn’t change the tax system. Whether you call it a “fair tax,” “progressive tax” or “graduated income tax,” the purpose is the same. State government has been fiscally irresponsible for years and has raised taxes continuously. But politicians never dialed down their appetite for spending, so now they have a deep hole to fill. This time, instead of raising taxes on everyone, the governor and his political allies claim the tax switch would be a “tax on the rich,” even going so far as to say the switch would result in tax increases for Illinois’ “top 3 percent” of earners only. This is false advertising on two fronts. First, when voters go to the polls to vote on the graduated tax amendment this November, they will not be voting on tax rates. They will simply be giving Springfield politicians free reign to set the rates as they see fit. If you think the tax rates being advertised today will become Illinois’ permanent tax rates, think again.
Illinoisans need to understand the basic of Pritzker’s fair tax system and how it can totally ruin Illinois.
Pritzker Pushing Fair Tax Can Ruin Illinois
Many financial experts, scholars, and economists think J.B. Pritzker pushing fair tax can ruin Illinois.
Many believe the new governor is inexperienced and incompetent
Illinois has the highest number of residents leaving to other lower taxed states due to high taxes
Illinois has the second highest tax rate in the Nation, right behind New Jersey
Pritzker is doing absolutely nothing to solve the state’s budget deficit
No amount of tax increases in the world will balance the state’s budget
Years of financial irresponsibility, mismanagement, corruption, and incompetence has crippled Illinois beyond repair
With Pritzker the new governor, the state will be on a fast-track road to bankruptcy
The Fair Tax Plan will be the fuel that ignited the fire for Illinois’ road to bankruptcy.
Understanding How The Progressive Tax System Works Under Pritzker’s Proposal
The fair tax plan will not just hurt middle class wage earners, but it will cripple the very businesses that generate the overwhelming majority of income, jobs and investment in Illinois.
Piotr Bieda of GCA Mortgage Group said the following:
I know what business owners do when they face a higher tax bill. Let me warn you: Should voters approve the graduated income tax amendment in November, the fallout will be disastrous.The coronavirus outbreak and the resulting economic shutdown has hurt America’s employers in a way we’ve never seen before. Unfortunately, in Illinois, the pain of the unforeseen pandemic comes on top of an already negative business climate. Illinois’ tax system today is imperfect. It’s wrought with carve-outs, cronyism and corruption. There’s a reason we hear more often about businesses leaving the state than businesses moving to and investing in Illinois. But at least we know what to expect in terms of taxes. If we switch to a graduated income tax system, the legislature will carve up the tax base, applying different rates to different taxpayers, arbitrarily raising taxes on businesses — large and small — whenever they’d like. And the tax rate business owners pay would fluctuate based on their income in any given year. That would create tremendous instability and uncertainty for Illinois’ job creators, who use business income to build capital to grow and expand. Throughout this crisis, Gov. J.B. Pritzker has stood at a podium claiming he’s doing everything in his power to help small businesses. Well, businesses need relief right now, and what a relief it would be if Pritzker and the General Assembly removed the threat of a tax increase on Illinois’ struggling business owners.
Alex Carlucci is an experienced private mortgage banker with Gustan Cho Associates, dba of Loan Cabin. He has been in the mortgage industry for 20 years, and prides himself of his excellent customer service and communication. Alex has extraordinary customer service throughout the whole loan process, and works very closely with each and every client to give them the best experience. Alex is very experienced and knowledgeable in Conventional, FHA, VA, and Jumbo loans. He is also always up to date with all the constant changes in guidelines in the mortgage industry. Alex credits Finance of America's support team as a foundation for his success. He has built a support team that has earned him an unmatched reputation for accessibility, communication and service to all parties involved in each and every loan. Please contact Mr. Carlucci at 630.915.7550 or email at email@example.com