PI Original Angela Caputo Monday April 6th, 2009, 1:07pm

Sun-Times Puts Illinois Income Tax In Perspective

Today, the Sun-Times does the public a
service by putting Gov. Quinn's proposed income tax restructuring in perspective. Personal
finance columnist David Roeder writes
today that "even if Quinn's tax hike is adopted, Illinois' income tax
rate would still be less than ...

Today, the Sun-Times does the public a service by putting Gov. Quinn's proposed income tax restructuring in perspective. Personal finance columnist David Roeder writes today that "even if Quinn's tax hike is adopted, Illinois' income tax rate would still be less than the highest rates of every neighboring state except Indiana."  He goes on to note that the low-income in Chicago face a high tax burden compared to their counterparts in other American cities, according to a study commissioned by the District of Columbia:

Looking at income, sales, property and auto taxes, the district found that a family of three earning $25,000 annually would shoulder a higher tax burden in Chicago than in all but two other cities. Change the income to $50,000, and Chicago drops to No. 9. At $75,000, it's No. 17. At $100,000, it's 27th, and at $150,000, its 34th among the 51 cities in the study.

Roeder provides even more detail in an accompanying sidebar.

In response to the common refrain that you "can't raise taxes during a recession," we've repeatedly noted that Illinois' flat tax represents a special case: At three percent, the rate is extremely low and, unlike the progressive tax structures found in most states, it severely disadvantages the poor while depriving the state government of needed revenue.  Kudos to the Sun-Times for providing readers with this important context as well.

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