Members of a tax policy group based in Washington D.C., came to Springfield Tuesday to oppose two pieces of legislation that would change Illinois' income tax from a flat rate to rates based on how much a taxpayer earns. The change would depend on lawmakers passing a proposed amendment to the state's constitution and voters approving it in the fall.
Joseph Henchman and Jared Walczak of the Tax Foundation said the state's current flat income tax gives it an edge when trying to recruit businesses.
"This proposal is not a tax reform change. This proposal just raises taxes and actually eliminates one of the best advantages that Illinois still has," Henchman said.
Rep. Christian Mitchell, D-Chicago, said his "fair tax" measure is about giving families and small businesses tax cuts.
“Today’s press conference in Springfield was nothing more than Washington D.C. outsiders coming to Illinois to spread fear and misinformation about my current legislation," Mitchell said.
ButWalczaksaid his group believes this will lead to higher income taxes for many small businesses in the state.
"This is business income," he said. "This is where you have that economic growth through your small businesses."
Rep. Lou Lang, D-Skokie, disputed that claim. He said the proposed rate system would give a tax cut to most taxpayers and put Illinois in line with neighboring states.
“My rate structure was designed to give the 'little guy' a break. Under our current unfair system the majority of the tax burden is carried by the middle class and small business owners," he said.
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