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|Sen. Don Harmon Unveils Fair Tax Rate Structure to Cut Taxes For 94% of Illinoisans, Including Everyone Earning up to $200,000|
|News Releases - Business & Economy|
|Written by Neal Waltmire|
|Wednesday, 26 March 2014 11:04|
Harmon: Fair Tax represents “third way” as alternative to current choice between antiquated, regressive flat tax and draconian cuts to vital investments and services
*** NOTE: Complete rate chart and example tax cut levels at bottom ***
Springfield, IL – Today, Senator Don Harmon (D-Oak Park) announced a complementary proposal to the Fair Tax Act he introduced in 2013, announcing a Fair Tax rate structure that would provide a tax relief for 94% of Illinoisans, including everyone making up to $200,000. The proposal would replace Illinois’ antiquated, regressive flat tax with rates that offer tax cuts to the overwhelming majority, while maintaining adequate revenue to protect vital investments in education, health and human services, and public safety.
“The choice we have is to extend the flat tax or to cut 13,400 teachers from the classroom, to take 95,000 kids off of early childhood education, to say ‘no’ to 30,000 college students wishing to get a MAP grant, to close 11 prisons and release 15,000 prisoners, to lay off 3,000 corrections officers, to cut the state police by 30%,” said Sen. Harmon. “This is a third way. This is a way to provide the services people need and to do so in a way that provides tax relief for 94% of Illinois families.”
Under the proposed rate structure, with lower rates for lower incomes and higher rates for higher incomes, the median Illinois taxpayer earning $55,137 annually would receive a tax cut of $303.
Harmon urged his colleagues in both houses of the legislature to support the pending Fair Tax Act by May 4th so that it may be referred to Illinois voters on the upcoming November ballot. “I trust the people of Illinois,” Harmon said when asked about out-of-state special interests running false and misleading attack ads against the Fair Tax.
Polling shows that 77% of voters support a Fair Tax, with lower rates for lower incomes and higher rates for higher incomes. Since its introduction in 2013, a large and growing statewide coalition has grown in favor of a Fair Tax, putting it at the top of the legislative agenda as Springfield considers budget options for FY2015.
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