5 Fair Tax Facts
Millionaires and billionaires are lying about the Fair Tax because they don’t have any good arguments against it. Even though they can afford to pay a little more in taxes – so we can get a tax cut and have services we need – they don’t want to.
Here are the facts:
- The Fair Tax gives working families a tax cut.
- The only new power the Fair Tax provides is to tax the rich.
- The Fair Tax protects retirees.
- The Fair Tax is used by the Federal Government and 34 other states.
- The Fair Tax will provide funding needed for our jobs and our communities.
See below for more details.
FACT: The Fair Tax gives working families a tax cut.
The Fair Tax give would only increase the income tax rate for the wealthiest 3% in Illinois (those earning $250,000 or more per year). If you earn less than $100,000 per year, your rate would go down, and if you earn between $100,000-249,000 your rate would remain the same.
The Illinois legislature passed a law (Public Act 101-0008) that puts these rates automatically in effect January 1, 2021 if the Fair Tax Constitutional Amendment passes.
See how much you’ll pay with the calculator below.
FACT: The only new power the Fair Tax provides is to tax the rich.
Legislators already have the power to tax. What the Fair Tax does is provide the option to raise taxes on those who earn more, whereas now an income tax increase must be applied to everyone regardless of how little they earn.
FACT: The Fair Tax protects retirees.
That’s why the AARP has endorsed it. Retirement income is not taxed under a Fair Tax and additional revenue provided to the state makes our demands to provide retirement benefits for SEIU members more likely.
FACT: The Fair Tax creates the same kind of graduated income tax system that the federal government and the majority of other states use.
Illinoisans deserve that same fairness.
FACT: The Fair Tax will provide funding for quality care, quality jobs, and equity.
The Fair Tax is estimated to provide $3.4 billion a year in funding for important services and jobs.
Many More Seniors with Home Care
100,000 more seniors could be served by the Community Care Program, almost doubling its size ($1.1 billion)
Many More Families with Child Care
100,000 more children could receive affordable child care through CCAP ($630 million)
Safe Staffing at Nursing Homes
Every CNA in the state to have a 1 to 5 resident ratio at all times ($980 million)
Funding for Safety Net Hospitals and Charity Care
$50 million more in funding to each safety net hospital in the state: ($1 billion)
Covering the cost of charity care hospitals provide in a year, serving nearly 1 million patients ($805 million)
Help for Immigrant Communities
Some immigrant services are very inexpensive, yet have a big return on investment. For example, we spend less than $7 million on immigration welcoming services. So a Fair Tax could easily help our immigrant communities.
Investment in Black & Brown Communities
No matter where we live or where we came from, we deserve quality care and quality jobs. With a Fair Tax, we will have more resources to pay essential workers – most of whom are black and brown women – and to reinvest in communities that have long been neglected, including many black and brown communities that have been the hardest hit.