In the upcoming election on November 3rd, voters will have a decision to make concerning the proposed constitutional amendment that would allow lawmakers in Springfield to change the tax rate from a flat tax to a graduated income tax. Retired Monmouth College Economics Professor, Ken McMillan says there is not a theoretical justification for changing the rate.
“The existing revenue article of the Illinois Constitution says very specifically that there shall be a flat rate tax. Now that does not mean everybody pays the same tax, that means as your income goes up, you pay the same percentage as anybody else, but somebody with a very low income basically pays a very small tax and if you have a higher income, you pay more and more and more. Now a progressive tax, which is what this amendment would propose, is one that says as your income goes up, you pay a higher and higher percentage of your income in taxes. Now that is the way the federal government does the income tax, but the federal government, part of its job is essentially what we call taking income from one group and transferring it to another. That is part of the federal governments’ function. On a state government level, our function is really to provide for education, provide for public services, and so forth. There isn’t a real theoretical justification for a graduated income tax,” McMillan states.
McMillan also serves as a board member on the Warren-Henderson Farm Bureau.
