The State's Credit Fundamentals Continue to Improve
16
Basic Options for Addressing the State's Fiscal
Challenges
Option 1: Across the
Board Cuts
Illinois would cut its
discretionary spending by
15 percent. Discretionary
spending includes:
K-12 education
Universities and
community colleges.
State Police
Social service
agencies
Option 2: Flat Tax
Increase
Illinois would raise the
flat tax rate from 4.95
percent to 5.95 percent ·
meaning that every family
in the state would pay
higher taxes.
For example, a single
mom making $61,000
would pay an additional
$521 in taxes.
Option 3: Fair Income
Tax
Illinois would change its.
system so the wealthy
pay more, like in 33 other
states. 97 percent of
taxpayers would have a
lower tax bill, while those
making more than
$250,000 would pay more
and generate $3.4 billion
in additional revenue.
The same single mom
would pay $271 less, a
difference of $792
compared to Option 2.
AL OF THE STAT
OF ILLIN
AUG. 26 1818View entire presentation