Illinois income tax to be increased by 75% or to 75%?

[Dr. Dan]

Well, not that I'm from that state, I just think it's comical because that's the same state Obama was Senator of before he became president.  Should show Americans the future of the US if they continue to keep up this travesty of him in the White House

http://news.yahoo.com/s/ap/us_illinois_taxes

[Secularbeliever]

Well, not that I'm from that state, I just think it's comical because that's the same state Obama was Senator of before he became president.  Should show Americans the future of the US if they continue to keep up this travesty of him in the White House

http://news.yahoo.com/s/ap/us_illinois_taxes

Going from 3% to 5% a 66% increase.

[Dr. Dan]

thanks for the clarification.

[דוד בן זאב אריה]

This will cause people to move out of the state. Same thing is happening in California they are going to Nevada

[takebackourtemple]

   At least it is still a fixed rate. The one thing I hate more than having an income tax is one where different people pay different amounts.

   No matter how high the national debt is, production is a measure of how well our country is doing. The government can always print more money or just not pay off the debt, however, they can't arbitrarily create something like food or fuel out of thin air.

   The problem about a graduated income tax that punishes those who earn more is that it impedes production.

[Rubystars]

   At least it is still a fixed rate. The one thing I hate more than having an income tax is one where different people pay different amounts.

   No matter how high the national debt is, production is a measure of how well our country is doing. The government can always print more money or just not pay off the debt, however, they can't arbitrarily create something like food or fuel out of thin air.

   The problem about a graduated income tax that punishes those who earn more is that it impedes production.

A flat tax puts more pressure on poor people than it does rich people, so it's not really flat. You would think that it would be fair to all, because everyone pays the same percentage regardless of income, but it's not really fair. Imagine you make $20,000 a year and pay 30% in taxes. You would have $14,000 left over. Now imagine if you make $200,000 a year and pay 30%. You'd have $140,000 left over. It hits the poorer person much harder financially than the richer person.

[Secularbeliever]

A flat tax puts more pressure on poor people than it does rich people, so it's not really flat. You would think that it would be fair to all, because everyone pays the same percentage regardless of income, but it's not really fair. Imagine you make $20,000 a year and pay 30% in taxes. You would have $14,000 left over. Now imagine if you make $200,000 a year and pay 30%. You'd have $140,000 left over. It hits the poorer person much harder financially than the richer person.

Rubystars you can say the same thing about anything.  Paying $20 thousand for a new car (that is modest these days) hits a person making $30k per year much harder than someone making $300k.   It couild even be argued that low income people are heavier users of government services and are getting a bargain paying a smaller tax amount than wealthier people who use the government less.

[Rubystars]

If you're going to do a flat tax it ought to be graduated in some way. I don't think people making small amounts should pay any tax at all, because for one thing if they need welfare (I mean really need it, not just being a bum) then how does it make sense to give them money and take it away at the same time?

[Dr. Dan]

Flatly, I don't think anyone should pay any to a tiny income tax rich or poor.  The government better serves us if they feel they don't have enough money and learn to save and spend it wisely.  More appropriately, we are better off having only sales tax and little to no income tax. That way rich or poor will not be penalized for working hard and making a lot of money or having a hard economic year and making very little money.

[Secularbeliever]

Flatly, I don't think anyone should pay any to a tiny income tax rich or poor.  The government better serves us if they feel they don't have enough money and learn to save and spend it wisely.  More appropriately, we are better off having only sales tax and little to no income tax. That way rich or poor will not be penalized for working hard and making a lot of money or having a hard economic year and making very little money.

Critics will say the national sales tax is regressive and hurts the poor since most of their expenditures are for necessary items.  Perhaps they can be given a rebate of some kind to the extent we feel obligated to help them.