The Forum: The progressive income tax amendment is a bad idea at the worst possible time

An amendment to change the Illinois Constitution to move Illinois from a flat income tax where all earners pay the same rate, to a progressive income tax where earners pay different rates will be up for a yes-or-no vote on the November ballot.

This progressive income tax amendment is a bad idea at the worst possible time. Illinois' July unemployment rate of 11.3 percent is the highest in the Midwest and above the national average. Losing about 850,000 people in the last 10 years, Illinois is only behind one other state - Alaska - in net out-migration numbers. Now, against the backdrop of a COVID-19 recession, Illinoisans will have the chance to determine whether we can find real solutions to these problems, or, whether we enable our politicians to raise taxes on us for generations to come.

The so-called "Fair Tax" is deceptively sold as a "millionaires' tax" in theory, but in practice, it will increase taxes on small business owners, farmers and job creators by as much as 50 percent. As variations of shutdowns and business mandates continue, these tax increases will ensure that too many business owners shut their Illinois doors for good, leaving our state without their tax dollars and people without their jobs.

Progressive tax proponents are spending hundreds of millions of dollars to convince voters that the amendment will make the wealthy pay their fair share. This is deceptive, because what this destructive amendment actually does is give Illinois politicians permanent, unbridled access to all Illinois paychecks.

Illinois is known around the world for our morally questionable at best and outright corrupt at worst political system. While the drama makes great fodder for headlines and Hollywood, it doesn't bode well in the way of sound economic policies. The progressive income tax amendment is one of these bad policies.

Unlike other states, increased revenue from the progressive income tax is not tied to education, property tax relief, reducing the bill backlog, or anything at all.

It is simply a big bag of cash thrown on the capitol steps to be spent by politicians at will.

With federal investigations, indictments and deals forcing more and more legislators to resign, Illinois politics is in total upheaval. Our politicians need to get their House and their Senate in order before they come back to the well for more of our hard-earned wages.

They say the "Fair Tax" is the fix-all solution to stop Illinois' financial meltdown.

It sounds nice, and even hopeful, but the math just doesn't add up. There simply aren't enough wealthy people and corporations to pay for Illinois' spending problem.

Even with our current flat tax, Illinois' top earners have always paid the majority of the state's income taxes. In 2017 about 5.7 million personal income tax returns were filed by Illinois residents.

About 62,000, or 1 percent of Illinois resident filers, earned more than $500,000. That top 1 percent paid $3.9 billion, about 25 percent, of the $15.9 billion total collected in personal income taxes from Illinois residents. Those 62,000 earners can't save this state even if they do stick around to continue paying their second highest in the nation property taxes and increased income taxes.

The unavoidable truth is there isn't enough money at the top to accomplish everything the administration has promised and pay Illinois' bill backlog. Sooner, rather than later, they are going to run out of the "rich people" money and the rates will go up and the brackets will come down to the middle class and beyond.

The problems in Illinois are serious, but the economic outlook isn't all doom and gloom. In fact Illinois' current flat rate is one of the best economic advantages we have as a state, because it provides the necessary brake on tax rate increases on individuals.

We have all shared the pain of two income tax rate increase in the last 10 years, and we all need to put a stop to the bleeding. Now is the time to come together and say no to the progressive income tax amendment that will close businesses, flood the General Revenue Fund with more cash to waste and raise taxes on working Illinois families.

• Todd Masich is president and CEO of the Illinois Chamber of Commerce.