Legislation also balances individual and corporate ratio at 1:1, applying the same progressive formula for both individual and corporate taxpayers

Springfield, IL - Sen. Don Harmon (D-Oak Park) has moved forward new legislation tying a specific rate structure to his Fair Tax Act proposal, including a fixed rate structure that would provide a tax relief for 94% of Illinoisans, including everyone making up to $205,000. Filing of SB350 marks another key step forward for a Fair Tax, which would replace Illinois' antiquated, regressive flat tax with fairer rates, while maintaining adequate revenue to protect vital investments in education, health and human services, and public safety.

Harmon's bill also equalizes the individual and corporate tax ratio at 1:1, applying the same graduated formula to both corporations and individuals?a tax cut for all businesses currently paying the 7% flat rate. Under the proposed rate structure, with lower rates for lower incomes and higher rates for higher incomes, the median individual Illinois taxpayer earning $55,137 annually would receive a tax cut of $303.

Harmon said he was incredibly encouraged by the surge of support for putting a Fair Tax on the November ballot for citizens to decide following his introduction of a rate structure, and the addition of Rep. Christian Mitchell as chief sponsor on the House side.

"The introduction of a rate structure that offers tax relief for 94% of Illinoisans while preventing draconian cuts to vital services that would result from Illinois driving off the impending fiscal cliff has been an absolute game changer," said Harmon.  "People understand this is fundamentally all about fairness."

"Just as the statewide grassroots movement of citizens supporting a Fair Tax has been surging for months, my House colleagues are now taking a hard look at the choices in front of them and many see that this is a third way?a way to provide the services people need and to do so in a way that provides tax relief for 94% of Illinois families," added Mitchell.

Polling shows that 77% of voters support a Fair Tax, with lower rate for lower incomes and higher rates for higher incomes. Since its introduction in 2013, a large and growing statewide coalition has grown in favor of a Fair Tax, and news analysis over the weekend confirms its place at the top of the legislative agenda as Springfield considers budget options for FY2015.

"The choices available today are bad for Illinois families: to extend a regressive flat tax or to cut 13,400 teachers from the classroom, to take 95,000 kids off of early childhood education, to say 'no' to 30,000 college students wishing to get a MAP grant, to close 11 prisons and release 15,000 prisoners, to lay off 3,000 corrections officers, to cut the state police by 30%. The Fair Tax is the third way," said Sen. Harmon.

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Building on momentum from Harmon's rate structure proposal, Rep. Mitchell has introduced new House companion legislation, with 38 co-sponsors today alone.  Senator Harmon's bill passes Senate Executive Committee

 

Springfield, IL - Fair Tax Act chief sponsor Senator Harmon was joined by new House chief sponsor Christian Mitchell today at a press conference to discuss renewed momentum for Fair Tax legislation.  Harmon began today's press conference declaring "the Fair Tax is alive and well in both the Senate and the House."  Shortly after the press conference, Harmon's Fair Tax Act, passed a Senate subcommittee.

At the conference, Rep. Christian Mitchell announced the introduction of HJRCA 49, a complementary measure to Harmon's bill.  The act would give Illinois voters the opportunity to amend the constitution to allow for a Fair Tax, with lower rates for lower incomes and higher rates for higher incomes.  Mitchell stated the Fair Tax is the most important issue they face this year in Springfield.

"All we're asking is that the voters of Illinois be entrusted with tax policy," said Harmon.

Mitchell's legislation, introduced just yesterday, has already garnered 38 co-sponsors and Mitchell says it has generated a great deal of excitement in the Illinois House.

Last week, Senator Harmon introduced a Fair Tax rate structure to accompany the Fair Tax Act, which provides a tax break to 94% of Illinois residents, every Illinoisan making up to nearly $205,000.  Two days later, a thousand Fair Tax supporters rallied at the Capitol urging its passage.

Senator Harmon said that the Fair Tax is a "third way" between extending an "unfair, regressive flat tax" or cutting "the critical services the citizens of Illinois depend upon."

Harmon said since a Fair Tax provides a tax break to such an overwhelming number of taxpayers in the state, it should be an attractive measure for legislators regardless of party affiliation or geography.

"This is not a partisan issue," said Harmon.  "I think our colleagues in the General Assembly are savvy enough to recognize 'this is good for the people I represent and I darn well better be for it.'"

The sponsors were asked about how leadership in their respective chambers viewed a Fair Tax.  Harmon noted that President Cullerton is a long-time supporter of the Fair Tax. Mitchell said that Speaker Madigan's millionaire surcharge amendment was recognition that millionaires should be tax at a higher rate than middle class families and minimum wage workers.  He said giving tax relief to 94% of Illinois residents was equally important and was why his legislation in the House has garnered so much excitement.

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Revenue, citizens from every corner of Illinois rally and lobby legislators to pass the bill, letting voters decide in November

Springfield, IL - Nearly 1,000 citizens gathered at the Capitol Building in Springfield today, loudly denouncing a House committee vote in progress that stalled Fair Tax legislation in the short term, while standing with Sen. Don Harmon (D-Oak Park) and a dozen other legislators to demand Springfield politicians pass the Fair Tax Act. With less than 40 days until the May 4th deadline, citizens from every corner of Illinois rallied in the Rotunda and later met with their representatives to demand a chance to vote on a Fair Tax in November.

"Do not despair the action in the House today," Sen. Harmon declared to thundering applause. "This fight has just begun!"  Harmon promised the Senate would continue to lead on the Fair Tax Amendment, while Speaker Madigan's proposed millionaire's tax advanced to a full House vote. Harmon and others stressed the need to pass a Fair Tax to ensure tax relief for 94% of Illinois families, in addition to the higher rates for higher incomes in a millionaire's tax.

A Fair Tax, with lower rates for lower incomes and higher rates for higher incomes, is supported by 77% of Illinois voters.  Currently, Illinois lawmakers are prohibited ? constitutionally barred?from enacting a Fair Tax.  The Fair Tax Act allows citizens to vote on whether to not they want a Fair Tax in the upcoming November election. On Tuesday Harmon unveiled a Fair Tax rate structure that cut taxes for 94% of Illinoisans, including everyone earning up to $200,000.

"The choice we have is to extend the flat tax or to cut 13,400 teachers from the classroom, to take 95,000 kids off of early childhood education, to say 'no' to 30,000 college students wishing to get a MAP grant, to close 11 prisons and release 15,000 prisoners, to lay off 3,000 corrections officers, to cut the state police by 30%," said Sen. Harmon. "This is a third way. This is a way to provide the services people need and to do so in a way that provides tax relief for 94% of Illinois families."

"It's not right that a home care worker like me who makes on average $13,000 a year should pay the exact same tax rate as a CEO who makes $1.3 million dollars every year," said Yvette Anderson. "We all know there is something very unfair about that."

Anderson, a home care provider from Chicago, was joined by Faith Arnold, who owns her own child care business in Chicago's west suburbs. "Critical programs like child care are constantly under threat of devastating cuts, and access has already been reduced for a number of Illinois families who need quality care so they can go to work and support themselves and their children," said Arnold.

Mark Garrity, owner of Garrity Equipment Company of Downers Grovetold the crowd that a Fair Tax is essential for Illinois' small businesses.  "There's no surer way to grow Illinois' small businesses and create jobs than a Fair Tax that puts more money in the hands of lower and middle income taxpayers, empowering them to spend that money supporting my business and businesses throughout Illinois," said Garrity.

Arne Waltmire, a high school automotive teacher from McHenry County, noted that good schools draw people and businesses to communities in Illinois.  He cited a news article about citizens in the Quad Cities moving to Iowa, a Fair Tax state, because their schools receive better support from the state.  Waltmire noted that Illinois ranks dead-last in state support of education and often the state is late paying its bills to local school districts.

"We can't rely on the Springfield to provide stable funding for our schools.  Local school districts don't know where their funding will come from and when," said Waltmire. "I expect my teenage students to turn in their homework in on time. Why do I expect more from teenagers than adults in Springfield?"

For months, the large and growing statewide coalition known as A Better Illinois has been advocating for a Fair Tax.  It has drawn support from every single legislative district - Republican and Democrat - including nearly 250,000 petition signatures, nearly 500 community and civic organizations, including both business and labor alike.

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Board says Fair Tax needed to lower taxes for the majority of Rock Island County families and save communities from devastating and unprecedented cuts to local services

 

Rock Island, IL -By an overwhelming majority, the Rock Island County Board passed a resolution this evening calling on lawmakers in Springfield to pass the Fair Tax Act (HJRCA 33/SJRCA 40) as a necessary first step to bring fairness to Illinois' tax code and to avoid devastating and unprecedented cuts to local services.  Right now, Illinois has an unfair tax system in which low and middle income families pay a rate that is twice the rate of the very rich, when factoring in all state and local taxes paid.

The resolution specifically endorses a "Fair Tax - with lower rates for lower incomes and higher rates for higher incomes" that would "lower taxes for the majority of Rock Island County residents and put more money into our local economy."

"Springfield's cheating our middle class families, holding back our economy, and jeopardizing our way of life here in Rock Island County,"said board member Brian Vyncke. "It's time for fundamental budget and tax reform that includes a Fair Tax, which means a tax cut for Rock Island families."

Vyncke noted that Rock Island County competes with its neighbor to the west.  He referenced data presented at last week's Governmental Affair Committee meeting that showed Iowa, which has a Fair Tax, has an unemployment rate that is half of Illinois'.  Scott County, IA has sales and property tax rates that are much lower on average that those in Rock Island County.

"We need to grow on this side of the river.  We need to make sure families choose to work, shop, and live here in Rock Island County and not head over the bridge to Iowa, which has a Fair Tax," said Vyncke.

Board member Don Jacobs noted that the county has already lost $500,000 from the state this year, which included cuts to the state's attorney's office.

"Today it's cuts to public safety. Tomorrow it will be more cuts to public safety and also to our schools, and our roads, services for our seniors, and all the other things that drive Rock Island County's economy and make our communities livable," said Jacobs.  "That's unless Springfield moves forward on the Fair Tax Act."

Mike Malmstrom attended this evening's hearing to offer his support for the Fair Tax resolution.  Mike is a veteran who is concerned about cuts to state programs that assist Illinois' veterans and those who have served in our Armed Forces.  Mike works to make sure Illinois' veterans are not homeless.  His son earned free college tuition from the state after serving in Afghanistan.

"Middle class folks like me will get a tax cut with a Fair Tax and could use one, but the state should not abandon our veterans just because millionaires want a tax cut too," said Malmstrom.

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A Better Illinoisis a statewide coalition of civic and community organizations, small business, labor and faith leaders, educators, service providers, and tens of thousands of ordinary taxpayers seeking to modernize Illinois tax structure to create greater fairness and long-term economic growth.