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Press Release

    Stop the Illinois Tax Increase

    06/04/2005

    THIS IS YOUR CHANCE to do something to “FIX ILLINOIS.” There is a dangerous “tax scheme” that is being promoted to “fix school funding.” It’s called HB755, and it doesn’t fix anything! Here is what you need to know:

    1. HB755 will severely damage the Illinois Economy
    HB 755 increases income taxes by 67% (from 3% to 5%) and the corporate income tax rate over 100% (from 4.8% to 10.5%). This represents a $5.8 billion dollar tax increase! This will drive business and jobs from Illinois economy and dramatically reduce economic activity.

    2. HB755 provides almost no “property tax relief.”
    The legislators pushing this job-killing increase are attempting to wrap its bitter taste in a sugar coating called “property tax relief.” Like most sugar coatings, this relief will disappear away quickly. Illinois citizens should know that these “tax swap” bills offer no reductions in property tax rates. Instead, the money is slated to go back to the school district, which will try to pass a referendum to keep the money. You may not see any reduction in your property taxes at all.
    Even the Chicago Tribune acknowledges that this bill will soak Illinois taxpayers with out offering any real relief.

    3. HB755 contains no Spending Reform
    Rapid Medicaid spending growth and overly generous and unsustainable pension giveaways are driving Illinois Budget problems. Nothing in HB755 addresses these issues. Instead, these cost drivers will eventually soak up any “property tax relief” monies.

    4. HB755 offers no accountability for Education.
    Worst of all, the people promoting this tax increase are flogging “education funding” as the reason for this tax grab. They are saying Illinois schools are “under-funded.” Nothing could be further from the truth.

    Just look at the graph (from Speaker Madigan’s Website). A 13% increase in students with a 158% increase in spending (don’t ask about test scores) – and it’s still not enough!

    HB755 has no accountability provisions for improving education outcomes. None!

    Send the graph above to your legislator and tell them you know exactly what HB755 is designed to do. It’s all about continuing Springfield’s Spending Party with out addressing any fundamental budget problems.

    Contact your state representative and tell them you want spending reform and education accountability instead of a HUGE tax increase to fund “business as usual.” Illinois taxpayers cannot afford this damaging tax increase. The truth is that there is no funding problem! There is a spending problem.

    You can contact your state representative by visiting http://www.ilga.gov/ or call 217-782-3944.