November 15, 2017

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Illinois, Latest News

Rauner Silent as the Illinois Middle-Class Faces Tax Increase

Congressional Republicans Tax Plan Could Raise by Over $1,200 for Many Illinois Middle-Class Families; Wealthiest Illinoisans Would See Disproportionate Share of Benefits

In Washington, Congressional Republicans are attempting to force through a tax overhaul skewed to benefit the wealthiest while many middle-class Illinois families could see an average tax increase of $1,267. And once again, Governor Bruce Rauner is doing nothing to protect them. 

In an interview with the Pantagraph, Rauner apparently “lauded” the Republican tax reform effort and talked about cutting the federal tax rate. However, the Republican plans would actually raise taxes on many Illinois middle-class families while exploding the deficit as the wealthiest enjoy a disproportionate share of the benefits. 

  • According to a recent study, the Senate version would mean higher taxes for about 15% of middle-class Illinois households – raising taxes by an average of $1,267.  
  • The House version would mean higher taxes for 27% of middle-class American households – raising taxes by an average of $1,360.

Rauner last month said he has “no obligation” to comment on federal matters. Will Rauner really sit quietly as middle-class taxes go up?

“Bruce Rauner loses all credibility if he stays silent while his own party plans to raise middle-class taxes,” said DGA Illinois Communications Director Sam Salustro. “Rauner refusal to stand up to his party and President in Washington shows he’s fighting for himself and not for Illinois families. Now, Republicans want to raise middle-class taxes, and Rauner is going to let it happen.”

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Background:

Institute of Taxation and Economy Policy: Senate Republican Tax Plan Would Mean Higher Taxes for 15.7% of Illinois Middle-Class Households By 2027. According to the Institute of Taxation and Economy Policy’s analysis of the Senate Republican tax plan, 15% of all Illinois households would see a tax increase by 2027. The breakdown for middle-class quintiles follows:

  • Second Quintile – 10% of households would see an average increase of $690;
  • Middle Quintile – 14% of households would see an average increase of $1,400;
  • Fourth Quintile – 23% of households would see an average increase of $1,710.

[Institute of Taxation and Economy Policy, How the Senate Tax Bill Would Affect Illinois Residents’ Federal Taxes, 11/13/17]

Tax Policy Center: House Republican Tax Plan Would Mean Higher Taxes For 27% Of American Middle-Class Households By 2027. According to the Tax Policy Center’s analysis of the House Republican tax plan, 24.2% of all American households would see a tax increase by 2027. The breakdown for middle-class quintiles follows:

  • Second Quintile – 24% of households would see an average increase of $760;
  • Middle Quintile – 30% of households would see an average increase of $1,230;
  • Fourth Quintile – 27.3% of households would see an average increase of $2,090.

[Tax Policy Center, Distributional Analysis Of The Tax  Cuts  And  Jobs Act As Passed  By The House  Ways  And Means  Committee, 11/13/17]