Pritzker Pushing Fair Tax For Illinoisans To Balance Budget Crisis

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BREAKING NEWS: Pritzker Pushing Fair Tax For Illinoisans To Balance Budget Crisis
Why Pritzker Pushing Fair Tax For Illinoisans
Prior to the coronavirus pandemic crisis, the U.S. economy was booming.
  • Never in history have Americans enjoyed such a great economy
  • Unemployment rates were under 3.5% which was a historic low
  • Wages were strong with inflation under control
  • Home prices were increasing year after year that both HUD and the FHFA had to increase FHA and Conventional loan limits for four years in a row
  • There was no sign of any housing correction
  • 2020 HUD Loan Limits were $336,760 on FHA loans
  • 2020 Conforming Loan Limits were $510,400 for conventional loans
  • 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.

Massimo Ressa of Gustan Cho Associates and an expert on state’s income taxation said the following:

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.

Most Illinoisans are not too happy with the job J.B. Pritzker is doing. All he seems to know is to increase taxes to fix the financial crisis in Illinois. He is not doing anything to attract new taxpayers and businesses to Illinois. In the short time he was governor, more Illinoisans and businesses left the state to other lower taxed states. Neighboring Indiana is one of the top states Illinois individual taxpayers and businesses are migrating too. Indiana is thriving due to their low taxes. Unless Illinois has major pension reform, the state will need to file bankruptcy. From the look of things, Pritzker seems like he will just be a one term governor.

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