An expert on state fiscal policy is calling for raising the state income tax and expanding the sales tax to balance Illinois’ budget within two years, without relying on cuts to social services.
Ralph Martire, of the Center for Tax and Budget Accountability presented these ideas Monday night in Champaign as an alternative to Governor Bruce Rauner’s budget proposals, which he says are mostly unconstitutional, or not politically viable.
Martire wants to raise Illinois’ income tax rate to just over 4%, and expand the sales tax base on some consumer services, but not those proposed by Rauner during his campaign.
“What would you leave out? Health care services, business to business services, professional services, those kinds of things. They create tax pyramiding, there’s lot of reasons why that’s a bad way to tax. What do you include? Haircuts, lawn care, nails, auto repair, bowling. Would that make us a high-taxed state? No!”
Martire says his proposal would generate around $4 billion in revenue, including $250 million for social services, and fund education at a higher level. He says a majority of lawmakers would back his plans, if voters supported them, too.
But he says he got no response when he tried to approach then candidate Bruce Rauner with his ideas before the election.