Moseley Braun: "Illinois Tax Hike Takes From Chicago Without Giving Back"
January 12, 2011 - Illinois lawmakers are set to raise the income tax rates from 3% to 5%; the first income tax hike in two decades is set to take effect immediately. In a desperate early morning attempt to fix the state’s budget crisis during a lame-‐duck session, lawmakers agreed to a 66% income tax increase. The increase means an Illinois resident who now owes $1,000 in state income taxes will pay $1,666 at the new rate. Chicagoans stand to pay for the increase, but are not guaranteed to see that money come back to the city as a “local share” provision was not implemented in the bill. Under the current tax structure, municipalities receive a share of income tax revenue. Today, mayoral candidate Carol Moseley Braun came out against the income tax increase because it will have an especially adverse effect on Chicago’s working class families without allocating additional money to Chicago.
The current tax structure guarantees that 10% of income tax revenue will go to municipalities to help defray operating costs. 10% of the 2% increase is not guaranteed to return to municipalities. All of the revenue from the tax increase will go to the state’s general fund because the proposal fails to include a “local share” provision for cities. The provision would have provided Chicago with an additional $280 million from 2011 to 2015, $140 million from 2016-‐2025, and $70 million from 2025-‐onward.
The allocation of resources can be remedied in the next General Assembly. A sentiment echoed by Senator Martin Sandoval (D-‐12), "Chicago is the economic engine for the State of Illinois, and with Carol Moseley Braun at the helm, with her local, state, and federal experience, our city will get its fair share of its economic resources.” Sen. Sandoval serves as the chairman of the Senate Transportation Committee.
Moseley Braun has a long history of being a fiscal conservative and has vowed to oppose any new taxes as mayor.