Illinois – Joanna's Journal

Do Chicago Residents Know What ‘Fair Tax’ Is ?

During the presidential elections, you may accidentally focus on what President you want to vote for; however, it is also important to understand amendments you will be voting on.

If you are a Chicago resident, you will have to choose whether or not you want the Fair Tax amendment to pass during this upcoming election. To learn more about the Fair Tax, read my previous blog post.

“I honestly haven’t even heard anything about it”, said Carla Martinez, a Chicago resident. When asked whether she would be voting in favor or against the amendment. After I explained to her what it would essentially mean, she replied, “I think I will be voting in favor for it, because people who make more money should have to pay more taxes”.

When most people talk about Fair Tax, they start off by stating the fact that “normal” people will receive pay cuts, while the rich will receive tax increases. Although this may be the case, there is much more that people don’t think about. People hear the first sentence and automatically think Fair Tax is in the best interest of the working class.

This was confirmed to me after asking another resident in my area a similar question. “I’ve heard about the Fair Tax while watching a Youtube video,” said Christopher Salas, “It said that it would increase taxes for the rich, so I was planning on voting in favor of it”. He also let me know that he had not planned on doing further research before going to vote, and used that one advertisement as his reasoning behind voting in favor.

I’m not saying everyone goes to vote without researching what they are voting on, but it appears that some people do. My first year voting, I went in knowing who I was voting for president and then I randomly filled in the rest. Since then, I have tried to inform myself on what I will be voting and how it will affect me and my community.

It is important to take part in our civic duties, but it is even more important to make informed decisions. We can not trust advertisements that tell us to vote yes or no, because they don’t give us the whole picture. We must do our own research and make our decisions based on facts and our beliefs.

Fair Tax For Illinois: Debunking Two False Claims

On Nov. 3, Illinois residents will have to vote on whether they approve the Fair Tax for Illinois amendment. An article written by Orphe Divounguy and Bryce Hill on Illinois Policy, gives an amazing overview of the claims Governor J.B. Pritzker has used to encourage residents to vote in favor of the amendment. The article can be found here: Reality Check on 5 False Claims Used to Boost Pritzker’s ‘Fair Tax’

Jared Walczak and Katherine Loughead also wrote a more in depth article about the Fair Tax amendment. Their article can be found here: Twelve Things to Know About the “Fair Tax for Illinois”

For those that don’t know, Fair Tax refers to an amendment proposed by Gov. Pritzker that allows for a graduated-rate income tax. “Under this law, the current 4.95 percent flat individual income tax would be transformed into a six-rate tax, with rates ranging from 4.75 to 7.99 percent.” In essence, people who make more money would be taxed at a higher percentage than people who made less money.

The first claim is that the fair tax amendment will help with equality, but in reality it will not have a noticeable effect on the gap between the rich and poor. “Inflation can impose a hidden tax…the marginal income levels are not indexed for inflation, meaning that over time, taxpayers will pay an increasing amount of taxes as a percentage of income—even if their income has not increased in real terms”. Thus giving an example of how this amendment will not create any meaningful change in terms of equality between the rich and the poor. In the long run, people who are not making more money will still end up paying higher taxes.

The second claim is that this amendment will not harm the state’s economy. This is a claim that even people who know nothing about how taxes work, will know is not true. Companies and businesses that make a lot of money do not want to have to pay higher taxes; especially, if they are providing jobs. “If Illinois does approve the graduated rate structure, it will go from 36th to 47th on the State Business Tax Climate Index.” Businesses and companies will not want to be located in a state that is ranked low on this index, because it means that their taxes are going to be higher. Less companies in Illinois will then directly affect the working class people who rely on these jobs.

These are only two of the claims that you might have encountered when hearing about the Fair Tax for Illinois, but it is important to understand what this will mean in the long run. Before you go out and vote, make sure you know the facts.