Taxes in the grand scheme of things are theft and forced upon the people that pay them generally. The problem we see in Illinois and many other states is governments and people pushing a progressive tax. We see leaders in many states pushing these taxes knowing the true end result they’ll get from enacting a progressive tax.
The state of Illinois already has a flat income tax rate but is currently pushing a progressive tax upon its residents. If you compare the two and ideologies behind them you’ll find that the flat tax is fair in comparison to a progressive tax. Why? A flat tax although it is a tax, equally takes from each person no matter how much money they make in a year. A progressive tax on the other hand takes more money percentage wise as someone earns more money. Why is this wrong? You are punishing someone for earning more money which comes with being productive.
We live in a society whose economy benefits off of people spending money and people statistically similar ratios of their income on things no matter how much money they make. The different between people based on their income isn’t spending but how much is saved but that’s a story for another article. Someone who makes half a million year versus someone who makes $50,000 a year will still spend the same percentage of their income. A person who would of received pay from a rich person’s spending now must rely on this money to be funneled to them through the government. You are trusting that the government is going to take this money and somehow give it to that same “deserving” person and usually with government ideologies it will not end up in that person’s hands.
Illinois’s Governor Pritzker and congress pretends that with a progressive tax it will be able to take more money from rich people and distribute it among people who it deems less fortunate in the state. The actuality behind this is that rich people will move their place of residency to another state to avoid this progressive tax. A result which will cause the state to actually lose the original income tax they were getting from the flat tax on these rich people they are now targeting. We will see a decrease in revenue and therefore the state will have to find another way to make up for this deficit they will cause with a progressive tax. YOU who are left living in the state which will most likely be lower and middle-class people will be paying the price through some form of tax. The state knows by passing a progressive tax, it will then be able to use this deficit as an excuse to raise taxes on EVERYONE.
We will see an increase in gas tax over the $0.19 we just saw in 2019 and we will possibly see an increase in our income tax rates and we may even see other registration fees and licensing fees increase. The progressive tax will be the nail in the coffin for Illinois. It would be the nail in the coffin for any state it occurs in right now as many states cannot afford to have their citizens pay more taxes. Many people can barely afford to pay the property taxes on the homes they live in let alone pay for groceries in emergencies that occur from situations like COVID-19 right now. We see approximately 49% of people living paycheck to paycheck. The government could provide instant relief to all these people if they decided to not take as many taxes from them. Instead, we see the government increasing taxes on those people in the long-term.
Taxes in general do not serve a beneficial purpose for society as a whole, it’s for specific groups of people the government deems deserving of the tax dollars. If a state must make the horrible decision of imposing an income tax upon its residents a flat tax is far more fair than a progressive tax but it is not moral. We will continue to see more and more people live paycheck to paycheck as governments continue to increase taxes.