“We don’t lower taxes here in Illinois,” State Representative Tim Schmitz (R) 49th district, said. “I’ve been here for fourteen years and we’ve never done that.”
“Even if it means lowering those taxes would bring in more than $6,300,000,000 in revenue for Illinois?” she said she asked.
She could hardly believe her ears. Perhaps he didn’t understand. So she explained how a graduated income tax would work for Illinois. She pointed out that forty-three states already have this kind of tax, that it would provide relief for middle and low-income residents, and that research has shown it boosts consumer spending and the local economy.
A graduated income tax, as Iowa has, would actually lower taxes for 54% of Illinois residents and would bring in an additional $6,300,000,000 in annual revenue, according to research done by the non-profit bipartisan research group called Center for Tax and Budget Accountability.
She knew she was telling Representative Schmitz solid facts. She knew what the research group had concluded.
“Illinois has historically been one of the most unfair taxing states in the U.S,” the Center’s summary of their research states. The summary further adds, “…data indicate that Illinois’ lack of tax fairness has both contributed materially to the state’s ongoing General Fund budget deficits and harmed Illinois’ private sector economy.”
Those are some pretty strong words from a non-profit bi-partisan research group. But she said Representative Schmitz would have nothing of it.
The elderly lady had traveled to Springfield Tuesday, May 22 to speak with Mr. Schmitz about alternative solutions for fixing the budget that do not involve raiding state workers’ pensions and cutting social service programs for vulnerable Illinoisans.
Clearly, Mr. Schmitz was not listening to her reasoning, so she said she proposed he consider a Speculation Tax on trades at the Chicago Board of Options Exchange and the Chicago Mercantile Exchange.
“I don’t know what you’re talking about,” she said he told her in a condescending tone. “Perhaps I could google it,” he suggested rather wryly.
“A $1.00 tax on those trades would bring in about $6,000,000,000 to Illinois’ coffers,” she pointedly told him.
Yes, that’s $6 Billion. The Federal Government had such a tax from 1913 until 1966. It was nearly tripled during the Great Depression and it helped fund the development of our nation after the Depression. According to the Chicago Political Economy Group, such a tax would bring in about $537,000,000,000 annually to the Federal coffers. That would go a long way toward retiring our nation’s debt.
But Representative Schmitz appeared unimpressed with the possibilities, she said. And so she left, telling him if he did nothing about these two revenue streams, he was kissing good-bye about $12,300,000,000 for the State of Illinois.
Tags: budget, graduated income tax, IL-49th State Rep, Illinois, Illinois General Assembly, Medicare, pensions, speculation tax, Tim Schmitz
