Pritzker’s Progressive Tax Forcing Taxpayers To Flee State

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Pritzker’s Progressive Tax Forcing Taxpayers To Flee State

This ARTICLE On Pritzker’s Progressive Tax Forcing Taxpayers To Flee State Was PUBLISHED On October 4th, 2019

Pritzker's Progressive Tax
Gustan Cho Associates

BREAKING NEWS: Illinois Governor Pritzker’s Progressive Tax Forcing Taxpayers To Flee State To Lower-Taxed States

  • Pritzker’s Progressive Tax is confusing many Illinoisan
  • Taxpayers are mixed in whether or not to support JB Pritzker’s Progressive Tax
  • The state currently has a flat tax structure system
  • Pritzker is trying to change the current system to Pritzker’s Progressive Tax System
  • The recently elected Illinois Governor is lobbying that taxpayers will pay lower taxes if they support the change in its tax structure to Pritzker’s Progressive Tax
  • Illinoisans who know the progressive tax system are not buying it

In this BREAKING NEWS article, we will cover and discuss Pritzker’s Progressive Tax System proposal.

Is Pritzker’s Progressive Tax A Good Deal For Taxpayers?

Is Pritzker's Progressive Tax A Good Deal For Taxpayers?

Tax experts and economist advise Illinoisans to reject Pritzker’s Progressive Tax. Michael Gracz, the National Sales Manager at Gustan Cho Associates and monetary policy expert said the following:

Illinois taxpayers should reject Pritzker’s Progressive Tax. Pritzker’s “plan” is simply too good to be true and he is obviously an idiot who does not know what he is talking about. Pritzker already promised billions in spending promises he’s already made and his rejection of any structural reforms to the budget –especially to pensions. Simply put, the governor’s progressive tax numbers aren’t credible, nor is his offer of tax breaks for the middle class. Illinoisans might think they’ll get a deal, but in reality, they’re setting themselves up to take a hit.

Mike Gracz, who was born and raised in Illinois recently moved to Denver, Colorado due to Illinois’s financial mess.

What Experts Say About Pritzker’s Progressive Tax Plan Versus The Current Tax Structure

What Experts Say About Pritzker's Progressive Tax Plan Versus The Current Tax Structure

The following points are the reasons why Pritzker’s Progressive Tax is a bad idea to the current flat tax structure:

  • Pritzker’s “Fair Tax” is not a proven tax structure that is solid and works
  • Taxpayers have no voice on the rates of the tax structure
  • JB Pritzker is clueless
  • He thinks only the rich will be getting taxed
  • The middle class and working-class will be taking a harder hit than the wealthy

JB Pritzker’s Solution In Solving Illinois’ Financial Crisis

What is JB Pritzker's Solution In Solving Illinois' Financial Crisis

As time passes, JB Pritzker seems he has no solution with cutting spending and balancing the budget.

  • However, it is early to judge the Illinois Governor on how he will eventually perform
  • As a billionaire businessman, he should be business-savvy on the idea that he needs to run the government like a business like President Trump
  • Most successful businessmen agree it’s not how much you make but rather how much you spend
  • It seems so far that with this governor, he has no plans of cutting spending and wants to keep on raising taxes

Raising taxes consistently without any cuts will force many taxpayers to leave the state. This is making many Illinois taxpayers very nervous about Pritzker.

Issues With Illinois

What are Issues With Illinois

Illinois is one of the most beautiful states in the country. Home of the second largest city, Chicago, and great architecture, the state can attract countless of new residents annually. However, due to the financial mess in Illinois, residents are leaving Illinois in droves.

It seems like Illinois needs competent politicians who can run the state like a business.

Is Illinois Governor JB Pritzker Clueless And Incompetent?

Is Illinois Governor JB Pritzker Clueless And Incompetent?

Unfortunately, JB Pritzker is getting less and less credibility as time passes.

Have we elected a total incompetent governor in Illinois? Many wonder.

How Does Pritzker’s Progressive Tax Proposal Work?

How Does Pritzker's Progressive Tax Proposal Work?

There are 8 states in the U.S. that have no state income taxes.

  • There are 10 states in the nation with a flat income tax system which includes Illinois
  • 32 states in the U.S. have progressive income tax systems
  • In a flat tax structure system, all residents of the state have the same tax rate
  • Illinois is currently a flat tax state with a flat tax of 4.95%
  • This holds true no matter what the taxpayer income is
  • Whether the taxpayer is low-income, middle-income, or high-income, everyone pays the same tax rate
  • The more a taxpayer makes, the more in state taxes they pay
  • Pritzker’s Progressive Tax changes the state income tax structure
  • Not everyone will pay the same rate

Pritzker’s Progressive Tax will penalize higher-income wage earners with much higher tax rates than those with lower incomes.

How Pritzker’s Progressive Tax Becomes Law

How Pritzker's Progressive Tax Becomes Law

For Pritzker’s Progressive Tax to become law, three-fifths of lawmakers in the state House and state Senate need to vote.

  • Once this is in the agreement of the 3/5th of lawmakers, the amendment will go on the next election which is 2020
  • 3/5th of Illinois voters need to vote on Pritzker’s Progressive Tax amendment for it to become Illinois Law and added to the Illinois Constitution

Pritzker has been lobbying very hard. He even played hard politics by calling it the “Fair Tax for Illinois.” Pritzker’s Progressive Tax is far too low to solve the state’s financial mess and the spending promises he has made.

What Illinois Taxpayers Say

What Illinois Taxpayers Say

According to Massimo Ressa, Chief Executive Officer at Gustan Cho Associates, he said the following:

Pritzker says his rate structure will cut income taxes on all Illinoisans earning less than $250,000 a year by as much as $65. He’s also promising additional tax credits that are worth $200 bucks or more, depending on each taxpayer’s circumstances. His main selling point is that 97 percent of all earners in Illinois will get a tax break under his “Fair Tax.”

Below are four simple scenarios shared by Pritzker that show savings for various family types, ranging from $115 to $271.

What is Household with children

Massimo Ressa continued:

In contrast, Pritzker’s “plan” hikes taxes on Illinoisans with incomes of $250,000 and more. Their tax rates will jump from 4.95 percent today to 7.75 percent and higher. The worst-hit will be earners who make more than $1 million a year. They’d see their income tax rate grow by more than 60 percent, to 7.95 percent from 4.95 percent.

The table with the full range of rates is shown below.

What are Gov. Pritzker's'' Fair Tax" progressive income tax rates

Illinois is one of the hardest-hit states in the nation.

  • Illinois’s gas tax recently doubled
  • All of these promises made by JB Pritzker and politicians are not realistic and will not come to fruition
  • Something needs to be done and be done fast before there is a financial meltdown in Illinois
  • Pritzker’s Progressive Tax is not realistic

Pritzker will be losing his credibility when the time comes where he cannot deliver on his promises.

How Bad Are We Financially In Illinois

How Bad Are We Financially In Illinois

Illinois is one of the highest taxed states in the nation. Illinois is also one of the top states with financial problems. Here what Dale Elenteny, a Senior Mortgage Advisor at Gustan Cho Associates said:

Pritzker says his rates will collect $3.4 billion in new revenue, which isn’t remotely close to the $10.7 billion to $18 billion in new, additional spending that Pritzker has promised. The governor wants to increase Illinois’ annual budget by at least 25 percent, spending billions more on everything from education to health care and from pensions to roads. The rates he’s proposed won’t do that. Nor are those rates anywhere near high enough to fix the state’s financial crisis in the absence of structural reforms. And since the governor has rejected making any reforms to pensions, the state will have to spend billions of additional dollars just to keep the pension crisis from getting worse. The “Fair Tax” rates are one of the oldest sales tricks in the book. Draw customers in with a too-good-to-be-true deal, then whack them with the real cost after it’s too late. In this case, after Illinoisans have passed the progressive tax amendment.

It seems the reality when things cool down with all of these promises by Pritzker is that income tax hikes, and other tax increases are imminent in Illinois if the governor wants to get the money he needs for Illinois. It does not seem promising that JB Pritzker will get re-elected the next term the way things are going.

Too Much Promised Without Thinking

Too Much Promised Without Thinking

You ever hear the saying “Talking Out Of Your Ass.” This is what JB Pritzker seemed like he did. He promised too much without a way of finding funds to pay for it. A huge middle-class tax hike seems imminent in the coming months to keep Illinois in business:

Why Pritzker can't avoid a middle class tax hike if he wants to spend all that he's promised

For more information about this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com.

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What is South Carolina's progressive tax hits all income above $14,650 with a 7 percent rate

Below Are Oregon’s Progressive Income Tax Charts:

What is Oregon's progressive income tax structure hits income above $3,400 with a 7 percent rate, and the rates only go up from there
What are State income taxes paid by a Connecticut resident with $55,000 in taxable income

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