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Seniors Most Likely to be Adversely Affected by “Fair Tax” According to New Report

A new report out says seniors will be adversely affected by the so-called Fair Tax if it were to pass.  Illinois Policy says retiree’s income tax would jump by 9.3%.  Currently, Illinois retirees don’t pay state income tax.  Under the governor’s proposal, those seniors would pay an average income tax of 4.7% with some paying as high as 9.3.  The Illinois Policy Institute opines that retirees are among the groups least likely to leave the state, however a significant tax could threaten that.  While the Land of Lincoln currently has no tax on retirement income, sales and property taxes are among the highest in the nation.  The Illinois Policy Institute, founded in 2002, is a libertarian non profit think tank with offices in Chicago and Springfield.  The group is active in education policy, pension policy, and state budget issues.

Read the full amendment here:  https://ilga.gov/legislation/fulltext.asp?DocName=&SessionId=109&GA=101&DocTypeId=SJR&DocNum=1&GAID=15&LegID=126926&SpecSess=1&Session=1

Tax implications at different income levels, according to IPI:

 

Income                       Taxes paid at 4.7%                          Taxes paid at proposed 9.3%

 

$25,000                      $1,175                                                $2,325

 

$50,000                      $2,350                                                $4,650

 

$75,000                      $3,525                                                $6,975

 

$100,000                   $4,700                                                $9,300

 

$250,000                   $11,750                                              $23,250

4 comments
  1. DAVY MILLER
    DAVY MILLER
    October 6, 2020 at 10:35 am

    This is what will happen to fed. taxes if biden gets elected!

    Reply
  2. vicki s case
    vicki s case
    October 6, 2020 at 6:16 pm

    Please read page 6. It states this new tax make it possible to raise anyone’s taxes when they wish with out a vote.

    Reply
  3. Senior
    Senior
    October 6, 2020 at 9:22 pm

    Totally misleading article. Retirees do pay income tax on certain income. Get your facts straight before you publish these propaganda articles

    Reply
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