PROGRESSIVE INCOME TAX-OPPOSE
The resolution serves as a formal declaration reinforcing the state’s commitment to maintaining its flat income tax structure, which proponents argue is critical for attracting and retaining businesses. By preserving this system, the Illinois Senate aims to avoid financial policies perceived as detrimental to the economic landscape of the state. This approach seeks to reassure taxpayers that their financial obligations will remain stable, promoting a favorable environment for economic activity and investment.
Senate Resolution SR0027 articulates the Illinois Senate's opposition to any efforts aiming to implement a progressive income tax system in the state. The resolution reiterates the decision made by Illinois voters in the 2020 election, where a proposed amendment to establish a graduated income tax was soundly rejected. Supporters of the resolution highlight current economic challenges, including rising inflation and household budget strains, arguing that further tax increases would add to the existing burden on Illinois residents, who already face some of the highest taxes in the nation.
Critics of a progressive tax system have pointed out that transitioning to graduated rates could lead to increased tax burdens primarily on higher-income earners, potentially driving businesses and affluent taxpayers out of Illinois. The resolution asserts that a flat tax maintains one of the few competitive advantages the state has, particularly as other states have shifted away from progressive income taxes. By opposing any constitutional changes that would facilitate such a transition, the resolution seeks to preemptively safeguard the interests of Illinoisans against what proponents consider unfair tax increases.