Illinois' Largest Taxpayer Group, NTUI, Opposes 33% State Income Tax Hike
CHICAGO—The president of Illinois’ largest taxpayer organization today denounced the tax-hike recommendations of pro-tax business groups that were sent in a letter to Governor Rod Blagojevich (D). The groups, which included the Civic Committee of the Commercial Club of Chicago, Chicagoland Chamber of Commerce, Illinois Business Roundtable, Civic Federation and the Taxpayers’ Federation of Illinois, recommended massive increases in the state personal and corporate income taxes.
The groups also recommended applying the higher state income tax to pension income, presently not taxed, and also recommended a new $2 billion state sales tax on services such as haircuts and auto repair.
“A 33 percent increase in the state personal income tax, recommended by these groups, would drive many professionals and businessmen out of the state,” said Jim Tobin, President of National Taxpayers United of Illinois (NTUI). “Furthermore, the state corporate income tax is not 4.8 percent as stated, but actually 7.3 percent, which includes the so-called 2.5 percent ‘replacement tax.’ Raising the base rate from 4.8 percent to 6.4 percent would result in a total state corporate income tax of 8.9 percent, from its present 7.3 percent, would discourage companies from moving to Illinois and would deter the start of new companies in the state.”
“The proposals do not offer any property tax relief despite the state income tax hikes. Public school spending on salaries and retirement benefits are out of control, and faster than you can say ‘county assessor,’ property tax rates will rise again. Yet the groups oppose property tax relief.”
“Without any huge state tax increases, total state revenues have been significantly increasing every year for the past five fiscal years. No state tax increases are or have been necessary; there is no ‘revenue crisis.’ The problem is runaway state spending, in excess of revenues.”
“Let’s make this clear: NTUI is affiliated with over 200 local taxpayer groups, and we all oppose hikes in the state income taxes. We do not endorse, and never have endorsed, the tax hikes proposed by these groups in the letter to the Governor.”
“Yes, the lavish government-employee pension and health benefits need to be reigned-in, but these reforms should be accomplished without any increases in state income taxes. Springfield is drowning in taxpayer dollars. The state legislators should cut state spending, and then work toward lowering all state taxes across the board.”