{"id":93644,"date":"2020-11-29T19:48:52","date_gmt":"2020-11-30T01:48:52","guid":{"rendered":"https:\/\/news.medill.northwestern.edu\/chicago\/?p=93644"},"modified":"2020-11-30T13:47:28","modified_gmt":"2020-11-30T19:47:28","slug":"fair-tax-failure-immigrant-leaders-break-down-why-and-whats-next","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/fair-tax-failure-immigrant-leaders-break-down-why-and-whats-next\/","title":{"rendered":"Fair Tax failure: Immigrant leaders break down why and what\u2019s next"},"content":{"rendered":"

By Kelly Heinzerling<\/strong>
\nMedill Reports<\/em><\/p>\n

When Illinoisans went to the polls this year, <\/span>they were asked to vote on an amendment<\/span><\/a> to the Illinois State Constitution which would give lawmakers the ability to create a graduated-rate income tax, which would tax wealthier people at a higher rate.\u00a0 Despite having the support of Gov. J.B. Pritzker and many immigrant rights and other advocacy groups, the Fair Tax Amendment failed to clear the 60% approval from voters needed to pass, falling five percentage points short.<\/span><\/p>\n

Supporters of the Fair Tax, which exists in some form in 32 other states<\/span><\/a>, say the measure failed for a variety of reasons.\u00a0 But they all agree that the flop can only spell<\/span> trouble for low- and middle-income families, many of whom are immigrants.<\/p>\n

\u201cThe failure of the Fair Tax amendment is bad news for virtually everyone in Illinois except the very rich,\u201d University of Chicago law professor Daniel Hemel said, noting the revenue from the graduated-income tax could have helped to fund public services such as schools and hospitals, while low- and middle- income families would have paid less in taxes.<\/p>\n

Hemel said the current flat-rate tax structure results in worse government services at a higher price tag.\u00a0 Put bluntly, Hemel said<\/span>, \u201creally, nothing good comes of the amendment\u2019s failure.\u00a0 It\u2019s a depressing outcome.\u201d<\/p>\n

Hemel’s disappointment is echoed<\/span> by community leaders who have petitioned for this amendment to pass for months.\u00a0 Immigrant leaders hoped that the additional revenue from a graduated income tax could fund important programs for lower- and middle-income people, including a proposal in the Illinois General Assembly budget<\/span><\/a> which would provide state-funded healthcare for all people 65 and older, regardless of immigration status.\u00a0 <\/span>Pritzker has said <\/span><\/a>there will now be cuts to fund basic costs in the budget.<\/p>\n

Making budget promises without access to proper funding is ultimately \u201cirresponsible\u201d to the immigrant communities they propound to help, said Youngwoon Han, a community organizer at the HANA Center.\u00a0 The Chicago-based HANA Center, which works to educate and organize Korean American and other multi-ethnic immigrant communities, operates through state funding and is now waiting to learn if, come budget cuts, the state will \u201csee them as a priority,\u201d Han\u2019s co-worker Jiyoon Song said.<\/p>\n

\u201cThe funding is a necessity.\u00a0 Our community sees that a more stable budget and revenue will benefit our community,\u201d Song said, adding that the tax was widely supported in the community she works with at HANA Center.\u00a0 \u201cWe saw Fair Tax as a step towards economic justice.\u201d<\/p>\n

Leaders hypothesize several reasons why the amendment failed, such as <\/span>voters skipping it because they did not understand where it was on the ballot, voters confused by the complex language, and the fact that the amendment itself did not use the word \u201cFair Tax.\u201d\u00a0 There was a large spread of disinformation surrounding the amendment, backers added, in part because of\u00a0 $56 million<\/span><\/a> in anti-Fair Tax advertisements funded by billionaire Ken Griffin.\u00a0 As the state\u2019s richest man, he had the most to lose from a graduated tax.\u00a0 Angee Peralta, a Democracy Project fellow at the Southwest Organizing Project, said that she witnessed the anti-Fair Tax commercials swing many people against the amendment by convincing them incorrectly that it was bad for the middle class.<\/p>\n

\u201cWe were competing against a very aggressive counter media campaign \u2026 when people see something on TV they automatically think it has to be true,\u201d Peralta said.<\/p>\n

According to the Institute on Taxation and Economic Policy\u2019s 2018 Tax Inequality Index<\/span><\/a>, the Illinois state and local tax system is the eighth most unfair in the nation, which means that after taxes are collected, incomes become more unequal.<\/p>\n

Without additional income, Illinois faces a $3.9 billion deficit for the current fiscal year with continuing deficits of $4 billion or more for the next five fiscal years, according to a Nov. 13 report<\/span><\/a> from the Governor\u2019s Office of Management and Budget.<\/p>\n

Enlace Chicago Associate Director Cesar Nunez said the Little Village organization estimated that Fair Tax could have raised $3 billion this year alone, with only the top 3% of income earners seeing an increase in taxes.<\/p>\n

As the state decides how to budget for this next fiscal year, likely involving widespread tax increases and\/or budget cuts, immigrant rights leaders remain confident that the time for a fairer tax system will come.<\/p>\n

\u201cWe\u2019re viewing this as a beginning \u2026 there\u2019s so many more individuals who are informed about Fair Tax today than yesterday,\u201d Nunez said.\u00a0 \u201cI don\u2019t think we should stop looking out for one another, and Fair Tax was a way to continue to look out for one another.\u201d<\/p>\n

Kelly Heinzerling is a video reporter at Medill, specializing in immigrant communities in Chicago. \u00a0<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Kelly Heinzerling Medill Reports When Illinoisans went to the polls this year, they were asked to vote on an amendment to the Illinois State Constitution which would give lawmakers the ability to create a graduated-rate income tax, which would tax wealthier people at a higher rate.\u00a0 Despite having the support of Gov. J.B. Pritzker […]<\/p>\n","protected":false},"author":418,"featured_media":93738,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5045],"tags":[],"class_list":["post-93644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fall-2020"],"yoast_head":"\nFair Tax failure: Immigrant leaders break down why and what\u2019s next - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/fair-tax-failure-immigrant-leaders-break-down-why-and-whats-next\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fair Tax failure: Immigrant leaders break down why and what\u2019s next - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Kelly Heinzerling Medill Reports When Illinoisans went to the polls this year, they were asked to vote on an amendment to the Illinois State Constitution which would give lawmakers the ability to create a graduated-rate income tax, which would tax wealthier people at a higher rate.\u00a0 Despite having the support of Gov. J.B. 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