Progressive tax reformers have expressed decidely mixed opinions about Gov. Pat Quinn's initial budget proposal. While they cheered his plan to raise the income tax rate by 1.5 percent in order to avoid drastic layoffs and address the mounting deficit, they questioned his idea to offset the impact by tripling the personal exemption from $2,000 to $6,000. Critics continue to point out that while tax relief for middle and low-income earners is crucial, Quinn's path is too expensive because it provides relief for people high on the income ladder. 

What's one alternative? A coalition of advocacy organizations proposes boosting the state's Earned Income Tax Credit (EITC), as they laid out in a Tribune letter to the editor today. They also held a Springfield press conference on Tuesday, during which Mary Ruth Herbers of the Center for Economic Progress explained the EITC's importance. Watch it (full video available at Blue Room Stream):

As Herbers notes, by only matching five percent of the federal credit, Illinois has the second smallest state EITC in the entire country. Qualifying households -- a family of four making about $42,000 a year or less -- can at most claim $240. The average hovers around $100 per family. Considering the state's regressive income tax system and growing sales tax rates, the current EITC does not adequately offset the disproportionate burden on low-income workers in Illinois

Advocates are calling on lawmakers to quadruple Illinois' contribution to 20 percent and increase the maximum yearly credit to $1,000. This would cost $350 million on top of the $90 million the state already spends on the program.  But the scope is more targeted and the price tag cheaper than tripling the personal exemption, as Quinn has proposed.  At Tuesday's press conference, Sean Noble, director of government relations for Voices for Illinois Children, said that the exemption is valuable as well.  He argued that the General Assembly -- which has balked at increasing the state EITC many times since it was established a decade ago -- should use both vehicles to provide sensible and fair tax relief.

Another proposal to keep an eye out for is the Family Tax Credit proposed as part of Sen. James Meek's SB 750.  This credit would apply to individuals making less than $28,000 annually and couples making less than $55,000.