No one is in favor of raising taxes. It’s ridiculous that the government cannot live within its means as the average citizen is forced to. But with Illinois state being $100 billion in January 2014 and counting, something has to be done.
These simple things would cost the average citizen less than $.30 a day. That’s a quarter and a dime. This is a partial plan figured up by someone not in a fancy political position. If someone can figure this within just a few hours hopefully Springfield can follow suit.
It’s estimated that roughly 12,882,000 people live in Illinois currently. If each person is taxed just an addition $10 a year at income tax time it would pay $128,820,000 a year towards the states debt.
Approximately 243,350 millionaires lived in Illinois in 2006 according to www.netstate.com. That makes Illinois the 11th richest state. If Illinois taxed those millionaires- as they are in a higher tax bracket- paid an extra $20 in addition to the $10 they are already paying it would generate $4,867,000.
This would be $133,687,000 towards the $100 billion and take approximately 748 years to pay off. If Illinois stayed in its budget and there was no interest charged.
There are 177 members of the Illinois General Assembly. Since Illinois Assembly members make at least $67,000 all the way up to $90,000, in the top twenty paid state government representatives. Neighboring Indian representatives make roughly $23,000 a year. So if all 177 General Assembly members take a $50 a week pay cup that totals to $2,600 a year per member or $460,200 a year for 177 members.
So far that’s $134,147,200 a year paying off debt in 746 years.
According to governing.com, Illinois brought in $15,692,351,000 in income tax in 2012. By raising this just 0.03% it would bring in $47,077,053 a year to pay for the debt. Now the total is $181,224,253 a year.
Next up, increase selective sales tax by 0.05% that would be about $0.04 per pack of cigarettes. In 2012 Illinois brought in $6,261,222,000 (governing.com) of selective sales tax. So $6,261,222,000 x 0.05% = $31,306,110.
If corporation net income tax also by 0.05% it would bring in an extra $17,472,695. Raise license plates b the same rate of 0.05%, or $0.48 a plate, and that would bring in an extra $13,011,480.
If regular sales tax was increased by 0.025% that would add an extra $20,086,165 as sales tax brought in $8,034,466,000 in 2012 according to numbers provided by governing.com.
With the final leg of personal tax, property tax being increased by 0.05% it would bring in an additional $325,530 to the $65,106,000 brought in during 2012.
Illinois governor makes $179,400, again one of the highest paid of all 50 state government bodies. Between the governor, his lieutenant governor, secretary of state, attorney general, treasurer, and comptroller they have salaries of $907,600. If a 20% pay cut is taken they will save Illinois tax payers $181,520, and still make above average salaries for their position.
All these small changes would save and create Illinois $263,607,753 a year.
While this would not pay off the debt in anyone’s lifetime, it would be a baby step in the right direction. With small tax increments that would cost the average tax payer less than $0.55 a day or $200 a year and only tax a small chunk from our politicians. Why not start here, if you have to start somewhere?