This issue of the Taxpayers' Federation's Tax Facts focuses on the hottest topic in Illinois taxes today: a proposal to amend Illinois’ constitution. Voters this fall will decide whether to authorize a change to Illinois’ 50-year-old flat-rate income tax and permit one imposed instead at graduated rates.

The comparisons of six hypothetical families and their tax liabilities in seven different states, including Illinois before and after the proposed rate changes are fascinating. Even with a significant tax rate increase on the high-income families, Illinois’ was not the highest tax bill. Take a look and see how various Illinois taxpayers will be impacted.

Graduated Income Tax Hike Disproportionately Affects Women & Minorities, Shrinks Illinois Economy by Nearly $2 Billion, Increases Consumer Costs, Leads to Reduced Household Spending

SPRINGFIELD, IL – An independent analysis conducted by Berkeley Research Group in conjunction with Ariel R. Belasen, Professor at SIUE, shows that passage of the graduated income tax on the November ballot would have devastating consequences to Illinois’ economy, consumers and jobs. If passed, the Tax Hike Amendment would shrink Illinois’ economy by nearly $2 billion, increase consumer costs by $332 million, lead to out-migration that would reduce household spending, and result in disproportionately more job losses in hospitals, restaurants and individual and family services that tend to employ more women and minorities.

The authors of the study were granted complete independence to provide an objective analysis of the effects of the proposed Income Tax Hike Amendment.

Read on ILChamber.org