Illinois needs progressive tax reform

Sustainable revenue to meet current needs and improved tax fairness will benefit vulnerable families

Heartland Alliance for Human Needs & Human Rights supports progressive tax reform in Illinois.  In the midst of a national recession and a sizable state budget deficit, Illinois must take wise steps to raise sustainable revenue to meet current needs and improve tax fairness.  We urge members of the Illinois General Assembly and the Governor to increase the state income tax to at least 5 percent coupled with a significant increase in the state's Earned Income Tax Credit in the final FY 2010 budget. 

Increase the income tax and improve tax fairness

Illinois has one of the most regressive tax systems in the country – meaning that those with the least ability to pay end up paying more than their fair share of taxes.  For families with low incomes, this creates a challenging and often impossible balancing act to pay for basic needs, such as food, housing, and health care.  Illinois' lowest income families pay close to 13% of their incomes toward sales, income and property taxes, compared to only 5% among Illinois' wealthiest families.  Increasing the state income tax to 5 percent, combined with tax relief targeted at those with the lowest incomes through the Earned Income Tax Credit, will increase the sustainability and fairness of our state's tax system and preserve the programs that vulnerable people depend on every day. 

Preserve funding for health and human services

We need every Illinoisan to be involved in the recovery of our economy.  Now is not the time to cut programs and services that are critical to the well-being of our state, especially when we have better options.  Not only do we stand to lose a significant amount of federal matching funds as a result of proposed cuts, strategic investments are necessary to protect the most vulnerable by strengthening families, communities and the state's economy overall.  The following programs must be maintained in the final FY10 budget:

• Addictions Treatment – Maintain appropriations at $86,599,800
• Supportive Housing – Maintain appropriations at $3,490,3000
• Mental Health – Maintain appropriations at $231,036,600 for Mental Health Grants
• Emergency Food and Shelter – Maintain appropriations at $9,413,900
• Homeless Youth – Maintain appropriations level at $4,747,700
• Refugees – Maintain appropriations at $541,000 for Social Services
• Temporary Assistance for Needy Families – Utilize resources within the existing IDHS/TANF line item to leverage federal funds available as part of the Recovery Act

As difficult decisions are made in the coming days and weeks, we urge the elected officials of Illinois to support progressive tax reform and prioritize the needs of Illinois' most vulnerable by ensuring prompt payment of existing obligations and preserving existing health and human services programs.