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A, B, C and D: Millionaire’s Tax may sound fair but upon closer inspection, hurts Illinois

November 21, 2014

Whenever the debate of public school funding comes up, someone is sure to make the statement that children are the future. Obviously the youth of the country should be provided with an education that can prepare them for adulthood.

According to the Chicago Sun-Times, Democratic House Speaker Michael Madigan projected that if those making over $1 million annually were taxed an extra 3 percent, the resulting $1 billion could go to school funding. On Nov. 4, Illinoisans voted in support of such a tax, even though it was non-binding.

If you don’t think this is a problem for the rest of us, think again.

If this comes to pass, those who would be taxed the extra 3% would vote again; some will vote with their feet and leave the state, and their businesses here, behind. Illinois already has one of the highest corporate tax rates in the country, so we should avoid making it less appealing to wealthy individuals.

It is true that Illinois is shrinking the corporate tax rate, but it doesn’t make sense to attempt an offsetting of this. To paraphrase William Graham Sumner, why should B and C decide what D shall do for A? If I had to take a guess, I’d say that we wouldn’t come close to raising the $1 billion.

Fewer millionaires result in fewer businesses, which means fewer jobs; fewer jobs mean shrinking populations and economies.

Illinois voters must value one’s rights to means of production; we must take the liberty of all parties into consideration.

Tom Lawson
Contributing Writer

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