The Quinn campaign says it’s against the sales tax on services proposed by Republican governor candidate Bruce Rauner. Democratic lieutenant governor candidate Paul Vallas did the talking, saying sales tax, even when applied to services, is a regressive tax. “I believe in progressive taxation, and I believe that people who make more should pay more, so anytime you’re imposing taxes that are regressive, I’m just not supportive,” he said.
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The Quinn campaign says the tax plan Rauner is promoting would cut Rauner’s own taxes by $1.1 million. Rauner says his plan takes taxes down for everyone. “Pat Quinn is the big taxer. I’m reducing taxes overall on the working families of our state,” he said.
Rauner proposes phasing out the income tax increase which took the personal rate from 3 percent to 5 percent in 2011. That rate is scheduled to fall to 3.75 percent at the end of this year. The tax on services is supposed to bring in $500 million-$600 million to compensate for some of that lost revenue, which will be well into the billions, depending on exactly how the income tax is lowered.
Vallas also said Illinois is not geographically positioned to extend sales tax to services, because neighboring states mostly do not tax the services that Rauner proposes to tax.