Election Day 2020 - What is the "Fair Tax"?

    

By John Raspante

            At the time of this writing, it is Election Day 2020, and more than 3 million Illinois residents have voted early. As more people line up at the polls today, voters are seeing a constitutional amendment on their ballot asking them to approve of the proposed Illinois “fair tax” by repealing the state’s constitutional requirement that the state income tax is a flat tax across income levels.

            This “fair tax” amendment, like all constitutional amendments, must pass by either 60 percent of votes cast on a ballot itself or a simple majority of all those voting in the election. If approved by enough voters, this amendment would allow lawmakers to set a graduated income tax rather than the flat tax rate that currently exists.

            As it stands currently, the Illinois state constitution requires all residents to pay the same tax rate – currently 4.95 percent – whether they make $20,000 a year or $20 million. The governor’s proposed change would keep the same or lower rates for anyone making less than $250,000 a year. However, the change would raise the tax rates on those making more money than that.

            The amendment wouldn’t directly set new tax rates, but would give lawmakers the power to do so. A “yes” vote will amend the constitution and allow for a graduated state income tax. A “no” vote would reject the amendment and keep the current flat tax.

            Governor Pritzker, a billionaire, unveiled the plan last year. “It’s wrong that I would pay the same tax rate as someone earning $100,000, or even worse, pay the same tax rate as someone earning $30,000,” he said at the time.

            Proponents of the changes say that the “fair tax” amendment would help to close a hole in the state’s budget. However, opponents say the amendment will hurt businesses at a time that many are already struggling financially. Additionally, the language on the ballot – calling the proposal the “fair tax” amendment – has drawn much criticism, and even a lawsuit calling it biased.

            Whether this new amendment gets passed or not is up to Illinois voters, and now is your chance to make your voice heard. Find your polling place here. 

Image courtesy of grassrootscollaborative.org