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Flat tax history explained, and what could happen if two similar amendments are on the ballot

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* As Democrats and their allies push a “Fair Tax” plan this week, Illinois Issues takes a look back at the Con-Con as part of an interesting explainer piece about why the state has a flat income tax and not a graduated one

During the debate over the state’s Constitution there were those who backed versions of a revenue article that did not prohibit a graduated tax. However, the issue was not the subject of strong advocacy from the groups that would seem likely supporters. “Chicago Democrats could have provided for a graduated income tax by voting as a bloc,” wrote Fishbane and Fisher. But they did not. “Permitting graduated income tax was not, however, a matter vital to organizational maintenance or enhancement.” In other words, adamant support of a graduated income tax would not have helped the Democrats politically.

Some Democratic did not want to risk backing a different and potentially unpopular tax concept. * But they also wanted to make sure enough money would be available for education and social programs as the state moved away from taxing personal property other than real estate. “Democrats in the Constitutional Convention had a vital stake in the adequacy of state government revenue. They had to ensure a reasonably flexible income tax without appearing to stand strongly in favor of it,” Fishbane and Fisher wrote.

Meanwhile, Republicans argued that voters would not accept a Constitution with a graduated tax rate. David Davis, a downstate Republican delegate, said a graduated income tax would be “absolutely repugnant” to the people in his area.

While many education and labor groups supported a graduated tax, according to Fishbane and Fisher, they did little to lobby delegates for it. “Although major elements of organized labor were opposed to adoption of the new constitution, in part on the grounds that it prohibited a graduated income tax, labor made no significant effort to influence the convention’s decision on the matter.” The 40 delegates endorsed by the AFL-CIO “split almost evenly” on the issue.

* In other constitutional amendment news, the Illinois Campaign for Political Reform has looked into what could happen if a remap reform amendment clears the General Assembly and the remap reformers continue pressing on with their own proposal and then both measures wind up in front of voters this November

If two proposals for redistricting reform end up on the ballot, this simple legislative language could clarify the process for all. It is not uncommon for two redistricting reform proposals to be on the same ballot – it happened in both California and Florida when they set out to give Independent Redistricting Commissions the responsibility of setting General Assembly districts. In California, the language below was included in both amendments. We believe that a similar provision would be very beneficial in any Illinois redistricting reform proposal.

…Adding… The criss-cross game is in full swing…


Senate approves its version of a remap amendment. Common Cause has found it wanting.

— DougFinkeSJR (@DougFinkeSJR) April 21, 2016

posted by Rich Miller
Thursday, Apr 21, 16 @ 1:03 pm

Comments

  1. Raoul’s amendment passed the Senate.

    Comment by Norseman Thursday, Apr 21, 16 @ 1:15 pm

  2. During the House debate of the millionaire tax, the notion of the a progressive tax was criticized, as was the Speaker (he was part of the 1970 convention). The question was asked “so what has changed?”. The short answer is that the distribution of wealth has changed dramatically, and the middle class has shrunk. The top 10% of Americans hold over 75% of the wealth.

    Comment by out of touch Thursday, Apr 21, 16 @ 1:34 pm

  3. The language ICPR proposed isn’t in the Independent Map proposal

    Comment by hum Thursday, Apr 21, 16 @ 1:38 pm

  4. Times are changing. In 1970 there was probably not the income inequality there is today, nor the financial power of a few super-wealthy political players like Rauner and his financial backers.

    Today it makes very much sense to push for a graduated income tax amendment. Rauner makes tens of millions of dollars a year and yet has the same marginal state income tax rate as those making five figures a year. His party’s philosophy is to fix the state largely on the backs of the poor, sick and unionized workers. There is no sacrifice required for those who could easily afford paying roughly what they would pay in Iowa, Minnesota and Wisconsin.

    Comment by Grandson of Man Thursday, Apr 21, 16 @ 2:27 pm

  5. Illinois needs to join the majority of states that tax growing sectors, i.e. the sale of services and the concentration of wealth.

    Comment by nona Thursday, Apr 21, 16 @ 6:12 pm

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