Monday, July 29, 2013

A graduated income tax would help reduce debt

Do Republican lawmakers really want the 5 percent state income tax rolled back to 3.75 percent, despite the state's huge debt? Or do they just want to complain about broken promises because the 2011 tax hike was called temporary?

What about the broken promises to public employees and retirees? The cost of pension reform has already been a 4 percent tax increase for retired workers to pay for the health care they were promised would be free. Another 3 percent of the promised pension will be cut each year if cost-of-living increases are eliminated.

Pension reform also proposes a 2 percent tax increase (from 8 to 10 percent in the form of an increased employee contribution) for all current public employees. If they were in the Social Security system, they would only pay 6.2 percent for retirement. Are public employees' retirements benefits promised?

The state owes the pension system, not the other way around. The state, not the pension participants, should pay the debt.

A graduated state income tax, already used in 34 other states, would help bring down the debt. Republicans controlled state government when the greatest damage was done to the pension system. Republican lawmakers should support allowing the voters of Illinois to decide whether to adopt a graduated tax.

ESTHER PATT

Urbana

Source: http://www.news-gazette.com/opinion/letters-editor/2013-07-27/graduated-income-tax-would-help-reduce-debt.html

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