Fair Tax misinformation

As a supporter of the Fair Tax Amendment, I want to clear up misinformation that has been published in recent letters.

The legislature passed two bills. One bill simply strikes from the Illinois Constitution a line that requires a single tax rate for all taxpayers - the flat tax. The other bill covers the tax rates, which cannot be implemented until or unless the Fair Tax Amendment to the Constitution passes.

The graduated tax rates already approved are as follows: The rates are 4.75 percent on taxable income from $0 to $10,000; 4.9% from $10,001 to $100,000; 4.95% from $100,001 to $250,000; 7.75 % from $250,001 to $500,000; 7.85% from $500,001 to $1 million. When taxable income exceeds $1 million when the tax rate becomes 7.99% flat tax. To be clear, everyone pays 4.75% on the first $10,000 of taxable income, then 4.90% on income from $10,000 to $100,000, and so on. The rates are not included in the Fair Tax Amendment.

Neither the legislation covering tax rates, or the Fair Tax Amendment includes taxing retirement income.

There have been concerns that if the Fair Tax Amendment is passed, the legislature will be able to raise rates any time in the future. The legislature can change tax rates now and has done so. If the amendment is not approved, lawmakers will have no choice but to raise the flat tax rate, so we all will be paying more, which will unfairly impact low and middle income families.

What the Fair Tax does do is to provide funds to pay off the accumulated debt of the state and, as that happens, allow the state to improve funding to schools. That will allow us to fix our property tax burden.

So, there are the facts. Vote "Yes" on the Fair Tax Amendment.

Jim McGrath

Barrington