To the Editor:
A recent letter gave a warning about our state government’s finances and urged people to vote “no” on the upcoming Fair Tax proposal. Unfortunately, the writer doesn’t have all the information.
According to figures from the Illinois Department of Revenue, 97.59% of McHenry County taxpayers and 97% statewide (those making $250,000 a year or less) will see no increase and many will see a decrease in their taxes as a result of the fair tax.
It establishes a structure based on income where more wealthy residents pay their fair share. This is what the federal government and 33 other states use. Illinois is one of only nine states with a flat tax. Neighboring states including Wisconsin, Iowa and Missouri all use a fair tax approach.
While it won’t reduce property tax, homeowners will get a 20% increase in the property tax credit on their state income taxes as part of this program. To see for yourself how the Fair Tax would affect you, I urge you to go to Illinois.gov/FairTaxCalculator to see how the change would affect you.
The writer is right that Illinois is going broke and the COVID-19 is making it worse.That being said, we need the Fair Tax revenue now more than ever.