A second public policy organization wants Illinois to expand tax retirement income and expand sales tax on some consumer services as part of a sweeping plan to fix state fiscal days.
The recommendations from the City Federation's non-resident management come one week before the new Government J.B. Pritzker is proposing to present its first budget proposal to legal people. The Democratic Governor legalizes and taxes sports and sporting pursuits, as well as restoring the state income tax system in two years. But he did not endorse tax on retirement income or specifically found on tax services.
In its "annual budget travel road," the Illinois Federation of Fiscal Sustainability City Institute says that new tax should be considered only as part of a multi-annual plan that also limits the state spending. It proposes to limit spending growth to 2.4 per cent per year for five years.
The call for tax retirement income makes a similar proposal last week from the Chicago Commercial Register Civic Committee, which is composed of the city's business elite. The Civic Federation is putting the idea up for a number of years, although its proposal in Springfield is not attracted.
The report of the watch group states that Illinois is one of three states but there is income tax but no retirement income is taxed. All neighbors of Illinois say tax retirement income in some form.
President of the City Federation, Laurence Msall, states the state policy "a very expensive and expensive exemption" which changes the tax burden from people who are quitting rich to people who work. By taxing all retirement income that is subject to federal income tax, which could give $ 2.5 billion in Illinois during the year, which begins on July 1, according to the report. Last week, the Pritzker administration had a budget deficit of $ 3.2 billion for the first fiscal year in a report that set the step on a low-budget budget plan next week.
The report also proposes to extend the state sales tax to 14 services that are taxed in Wisconsin but not Illinois, including cable and internet, parking and drawing, and landscaping.
The Civic Confederation warns against counting money from marijuana legal and sports betting in the Pritzker initial budget, noting that new industries will take time to tackle it and that income from such efforts deficit according to projections.
"In order to avoid construction deficits in future budgets, the initial proceeds from sporting gambling or cannabis should not be used to propose the Illinois budget until the state has a reliable accounting," Msall said in a statement.
Among its recommendations to address state-of-the-state pension plans, the report states that the lawsuit should invite voters to amend the Illinois Constitution that would allow the legislature to "make reasonable and moderate changes to pension benefits the current and the current employees. " At present, the state constitution says about the benefits "will not be reduced or damaged."