NO Progressive Income Tax for Illinois

Recently Illinois Comptroller, Dan Hynes, announced his candidacy for Illinois Governor. As part of his announcement he released a twenty page document entitled Leading Illinois Forward: The Hynes Plan for Tax Fairness & Fiscal Prosperity. This is an excellent read for policy wonks. It contains a number of great ideas to bring Illinois back to fiscal sanity. One idea that is NOT good, is his proposed progressive income tax for Illinois Taxpayers.

Currently, Illinoisans pay a flat 3.5% on their income. I believe this is too much. It should be lowered back down to 2% as it was before the Edgar administration raised it to its current level. Under Hynes' plan there would be a top rate of 7.5%. Luckily, the voters in Illinois would have to approve an amendment to put a progressive state income tax system in place. A progressive tax system would be another spike in Illinois already troublesome business and employment environment.

According to a CNBC report, Illinois ranked 25 out of 50 states in "America's Top States for Business 2009". In a state with Illinois' population, resources, talent, and amenities, that is shameful. Adding insult to injury Illinois ranks 43rd in Business friendliness and 38th in Cost of Business. Illinois does not need to continue its business and manufacturing decline by instituting a progressive income tax system. One does not need to be an Nobel Laureate in Economics to understand that capital (derived by income) is key to business development and growth.

To Hynes' credit, in his budget blueprint he offers a number of cuts that make incredible sense. How often do we here politicians bellow about cutting government spending, but do not hear a peep about what cuts they would make. Hynes' puts his ideas to paper. In addition he proposes a number of revenue enhancing ideas that are intriguing. Now, I like Dan Hynes. And in the interest of full disclosure, I did vote for him for Illinois Comptroller in 2006, wandering off the (R) reservation. It was a political chit I felt I owed to his family for their help in my Eagle Scout service project (a voter registration drive) three decades ago.

Dan Hynes is dreadfully wrong in his desire to bring Illinois a progressive Income Tax system. Such a system would only hurt Illinois's already feeble business and employment outlook. What is needed, is lower taxes on businesses and individuals. This would create a stronger environment for business retention as well as business creation and growth. Consequently, employment growth would follow beating down Illinois' already high 11% unemployment rate.

Please. NO Progressive Income Tax system for Illinois!!!!