Hiking taxes on wealthy is easy way out

Sophocles once said: "Wisdom outweighs any wealth."

And we hope wisdom prevails in stopping a proposal in Springfield aimed at soaking the wealthy to help pay the state's bills.

State Rep. Mike Smith, a downstate Democrat, wants to give voters a chance to decide if those making more than $250,000 a year should have their state income taxes doubled.

Now we would think that such a ballot initiative would stand a very good chance of being approved. No doubt resentment of the rich would be registered in such a vote. Even if not, there would certainly be those who would think, "They make a lot of money, they can afford to pay more taxes. Hit them up, not me." Those who make less than $250,000 vastly outnumber those who do make this much. We're pretty sure the 107,000 people in Illinois who make more than $250,000 would see this as a bad idea and vote no.

And it is a bad idea, for so many reasons. Certainly the rich should pay their fair share of taxes. And they wouldn't be lining up for public assistance benefits if this measure were to go through.

But this is engaging in class warfare. It's taking the easy way out in solving the state's budget woes by putting the financial burden for doing so on the backs of a few -- 5 percent of the state's tax filers -- under the cover of public support via voter approval of Smith's so-called "Robin Hood referendum."

And it would just invite more divisiveness in Springfield, which has enough of that already.

Graduated income taxes based on income are hardly unusual. But tinkering with the state's taxation system in the way Smith envisions is bad financial policy. As state Sen. Kirk Dillard, a Hinsdale Republican, points out, the state's low, flat 3 percent income tax rate is "one of the last good economic tools" in Illinois.

We wonder, too, if those who would support this increase in taxes are clearly thinking about the damage this might do for state economic development. A decision whether to bring a new business to Illinois that would create badly needed jobs in a weak economic climate is ultimately made by the top executives of such a firm. And you can bet they are making good incomes -- maybe even $250,000 a year or more. Do you think they are going to want to move their business to Illinois when they know their incomes are going to be taxed at a rate much higher than other states competing for their business?

Certainly a 6-percent tax on incomes of $250,000 would fall hard on many residents in our suburban readership area, where there is a high concentration of top wage earners. But it is not parochialism that guides our opposition to this proposal. It is the unfairness and economic folly of such.

If the wealthy are evading fair taxation through unjustified loopholes in the state tax code, then close them. Or, if they are getting tax breaks meant to promote investment to create jobs but are instead only adding to their personal wealth, then get rid of those tax breaks. That would not be soaking the rich in the way Smith proposes.

Besides, it takes a lot of nerve to be looking at raising anyone's income taxes when the state has proven to be such a poor manager of the tax dollars it has on hand now.