Illinois' Budget Crisis

Communities across Illinois have been hit hard by the current economic crisis. Closing and vastly under-funded schools, shut down community health clinics, and more new families than ever applying for food stamps illustrate how working families have been hit throughout the state. The state faces an incredible $12.8 billion dollar deficit and this number continues to grow. Illinois ranks near the bottom of all states for equitable education funding. The convenient answer that more cuts are what is needed is in fact not a real solution for our children and their families.

The current fiscal crisis makes it more apparent than ever that Illinois' tax system is in need of major reform. Illinois has the fifth lowest income tax burden and is one of the few states in the country with a flat tax. We seek to promote reform that creates a long-term, sustainable solution to our budget crisis and to resolve the unfair burden our current system places on low and moderate income families.

In order for Illinois to have a tax system that meets the state's structural needs for funding, we must raise the income tax. Vital social services – including education, healthcare, and basic human needs – are in immediate danger of facing drastic cuts unless new, reliable revenue is generated. To prevent deep cuts to programs that serve our children, older adults, and individuals with disabilities, we need to raise revenue to close the gap.

The current flat income tax places enormous burden on the state's poorest families. Families who make less than $16,000 spend 12.7% of their income on state and local taxes, while the top 1% (more than $1,322,100) spend a mere 4.6%. Illinois must adopt tax fairness measures to relieve the unfair burden on low-income families. Any increase in income tax must be offset by raising exemptions and increasing tax credits for low to moderate income families, transforming our regressive tax system to a more progressive form of taxation. Developing adequate and fair tax policies are vital to Illinois' future economic prosperity.