SPRINGFIELD, Ill. — Gov. J.B. Pritzker’s administration released a statement regarding the financial health of Illinois.
He says while the 2020 budget will pay down some of the state’s debt, the debt is expected to grow faster than the economy, under our current tax system; his administration projects Illinois’ debt to hit $19 billion by 2025.
Pritzker believes implementing his graduated income tax plan would help Illinois pay down debt faster.
“Without structural changes like the Fair Tax, Illinois will continue to struggle to make ends meet, pay our bills on time and deliver vital services, like public education and public safety,” said Pritzker. “While years of mismanagement has created these issues, we have a strong path forward and solution with the Fair Tax, which will ask the wealthiest 3 percent to pay more while 97 percent of Illinoisans will pay the same or less.”
During the 2020 election voters will decide whether Illinois should implement the governor’s graduated income tax system.
“Thanks to the bipartisan efforts of the General Assembly, we’ve already made fiscal progress, and I’m committed not only to stabilizing our budget but also making sure that Illinois grows and creates an economy that works for everyone,” the governor said.
Opponents say the plan will hurt economic progress, in part because the state will lose wealthy Illinoisans who will take their money and businesses out of the state.
According to the Pritzker administration’s report, if the graduated income tax is shot down by voters, Illinois would need to consider dramatic budget cuts of approximately 15 percent, which would include essential services like education funding and public safety. The state could alternatively raise taxes on Illinoisans by 20% under the existing flat tax.