In Illinois, state and local taxes are currently “regressive.” Working-class and middle-class families pay a disproportionate share of their incomes in taxes. Research shows that a number of reforms could promote tax fairness based on ability to pay, reduce tax burdens for working families to make them competitive with neighboring states, and support broad-based economic prosperity.
Property taxes are relatively high and regressive in Illinois.
Local school districts depend on property taxes, which account for 63% of all K-12 education funding.
Middle-class homeowners pay 6% of their incomes in property taxes compared to just 1% for millionaires.
To stem property tax growth, Illinois could increase state funding for K-12 education and consolidate townships.
Illinois is one of only 8 states that has a flat-rate income tax system.
Adopting a progressive income tax would provide tax relief while allowing the state to boost public investments.
A progressive income tax would cut taxes or keep them the same for 97% of Illinois taxpayers.
A progressive income tax would increase General Fund revenues by more than $3 billion per year.
States raising taxes on the wealthy had faster economic growth than their neighboring states.
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