When an Illinois lawmaker tries to ‘win’ a tax, guess who loses?

When an Illinois lawmaker tries to ‘win’ a tax, guess who loses?

In the Illinois state legislature, legislators have proposed numerous tax measures in a bid to raise revenue for the state. The debate over such measures is often contentious and is often framed as a “win” for the state versus a “loss” for its citizens. However, it is often unclear who the real winners and losers actually are when such taxes are enacted.

The recent proposal to increase the state’s income tax rate is a prime example of how taxes can have a far-reaching effect on a state’s citizens. The measure is being touted as a win for the state, as it will generate additional revenue that can be used to fund various social programs. However, when one considers who will be paying the additional taxes, it becomes clear that the citizens of Illinois will be the ultimate losers.

The proposed tax increase would affect all taxpayers, but it will hit Illinois’ middle and lower-income households the hardest. The measure would raise the state’s top income tax rate from 4.95% to 4.99%. While this may seem like a small increase, it will have a disproportionate impact on lower-income households, as the rate will be levied on the entire amount of a taxpayer’s income, regardless of their income level.

In addition, the proposed tax increase would also hit small businesses, as they are often unable to pass on the cost of the tax to their customers. This means that small businesses will have to bear the full burden of the tax, which could put them in a precarious financial position.

Ultimately, the proposed tax increase may be seen as a way for the state to raise additional revenue, but it is clear that the citizens of Illinois will be the ones who ultimately bear the brunt of the tax. While the state may be able to point to the measure as a “win,” it is far from clear that the citizens of Illinois will reap any real benefit from it.