Neither the Illinois General Assembly's approved budget nor the governor's proposed budget is going anywhere, and the Center for Tax and Budget Accountability says neither is good enough.
In a new report, “It's All about the Revenue,” CTBA research director Amanda Kass says what's needed is a big-picture change. “What really needs to be done is structural reform to change Illinois' tax policy, which has been flawed and out-of-date,” she says. “They need to tax services. Rather than just looking at how we plug the hole for (Fiscal Year) 2016, we should be look at how we fix it fundamentally for the long term.”
She also points to a graduated income tax system, as the federal government uses. Illinois currently has a flat 3.75 percent income tax. Kass points out a 5 percent income tax automatically rolled back Jan. 1.
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You might note that judges have taken the General Assembly out of the picture by ordering state spending anyway, but Kass says only part of the budget is at lawmakers' discretion anyway.
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