Dear Illinois Taxpayers,

Currently, Illinois is one of ten regressive states that impose a flat income tax rate.[1] Every individual earning or receiving money in Illinois is required to pay a flat income tax rate of 3.75% of their gross income.[2] This regressive income tax system has the biggest impact on low-income families. The combination of Illinois flat income tax rate and high sales tax makes it difficult for low-income families to secure a decent living.

Instead, we are in favor of adopting a progressive income tax system for the State of Illinois. A progressive income tax system is based on the ideology of an individuals’ ability to contribute a reasonable amount of their individual income.[3]  We believe a progressive tax system would help equalize the distribution of state revenue by requiring high-income earners to pay at a higher income tax rate than low-income earners.[4]   Also, a graduated tax system would allow Illinois to collect additional revenue for the state without increasing the tax burden on low- and middle-income families.[5] 

A progressive income tax system (graduated income tax) means low-income taxpayers will be required to pay a more manageable amount to the state. Higher income earners will pay a slightly increased, yet also manageable income tax rate based on their gross income earnings.  This will take the burden off low-income families.

Illinois needs a tax system that will guarantee a fair amount of revenue for the state of Illinois that would satisfy the necessary needs to fund our public education systems, social service agencies, public safety, and other important infrastructures. A graduated income tax system will move Illinois in the right direction.

Sincerely,

The St. Augustine College Social Justice Class

[1] Swerdlow, S. "Illinois' Flat Income Tax Places It in the 'Terrible Ten' - Chicago." Chicago. June 25, 2014. Accessed November 9, 2015. http://chicago.suntimes.com/politics/7/71/165610/illinois-flat-income-tax-places-it-in-the-terrible-ten.
[2] "Income Tax Rates." Illinois Revenue. 2015. Accessed November 9, 2015. http://www.revenue.state.il.us/TaxRates/Income.htm.
[3] Graduated tax. (n.d.) Farlex Financial Dictionary. (2009). Retrieved November 22 2015 from http://financial-dictionary.thefreedictionary.com/Graduated+tax
[4] Graduated tax. (n.d.) Lightbulb Press Dictionary of Financial Terms. (2008). Retrieved November 22 2015 from http://financial-dictionary.thefreedictionary.com/Graduated+tax
[5] CTBA (March 2012). Fact Sheet: Creating a graduated income tax.  Retrieved from http://www.ctbaonline.org/sites/default/files/reports/ctba.limeredstaging.com/node/63/edit/1385494589/FS_2012.03.27_Fact%20Sheet_CTBA%20GIT%20Final.pdf