Taxes – a reality check

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The big news in Illinois this week has been the passage by the state house and senate of the state income tax. The media (and every uninformed person on facebook) has been up in arms. They are touting this 66% increase as the worst thing that has ever happened to our great state.

Now, let’s look at the facts…

THE PROBLEM: Due to prior poor management (Rod B. and others) our state is BROKE. Just one instance of where this affects people is that payments to schools is more than a year behind. All the schools in my area have had to make major cuts. That is just one example. State employees’ pensions are not going to be paid. They have cut staff. People are losing their jobs. Something has to be done.

THE SOLUTION:

1. This major 66% tax increase… is from THREE percent to FIVE percent. Really? You think this is the end of the world? It’s not like the tax is moving to 66%.

2. The media says WI and MO are going to benefit greatly because businesses and people will be moving to these adjacent states. Well, I live right on the Iowa border. You notice they aren’t including Iowa in those comments. Yeah, that’s because a 5% tax in Illinois is still LESS than Iowa.

3. There was a federal law passed in December lowering the Social Security tax from 6.2% to 4.2%. This makes the state income tax increase a WASH.

4. This is a temporary increase to get the budget balanced and then it reduces in four years.

5. And most importantly at all… IT HASN’T EVEN BEEN SIGNED INTO LAW YET.

Relax people. This is NOT the end of the world. This is a temporary measure to get our state back on track. We NEED this.

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