Daily Debunk: Don't believe the tripe

Misinformation, disinformation, and pure propaganda are out there on the fair tax, and everybody knows it

Chicago Federation of Labor President Bob Reiter champions the Fair Tax Amendment Thursday in a “virtual campaign rally” held online. (Zoom)

By Ted Cox

Instead of zooming in on a specific matter in our Daily Debunk, confronting efforts to undermine the Fair Tax Amendment, today we’re going to zoom out and remind Illinois voters of what many already know.

Misinformation, disinformation, and pure propaganda are out there in an attempt to undermine support for a graduated income tax in Illinois — and everybody knows it, or at least should.

This came up Thursday as supporters of a progressive income tax held what they called a “virtual rally” online in support of the Fair Tax Amendment. Deprived the opportunity in the ongoing pandemic to hold a campaign rally with tens of thousands of union members and other committed citizens at, say, the Petrillo Music Shell in Chicago’s Grant Park, they instead held a virtual rally through Zoom. It was just as impassioned, if a mite less raucous.

But it was Chicago Federation of Labor President Bob Reiter who reminded everyone of what they’re up against. Speaking in front of a colorful union mural, he said, “Now I’ve seen some of the blatant misinformation and distractions and — to be honest — outright lies coming from the wealthy special-interest groups to keep the broken status quo,” he said. “Anyone who’s thinking about this, if a rich guy is telling you that you need to fight back against the Fair Tax Amendment, you’ve got to ask yourself, ‘Is it for them, or is it for us?’

“They’re trying to pit us against our own interests,” Reiter added. “Working people have a chance to have our voices heard directly at the ballot box. This is about us.”

So let’s review in the simplest, most straightforward terms. The Fair Tax Amendment alters the state constitution to allow a progressive income tax — no more, no less. Here’s the language on top of the ballot, which some voters will be seeing Thursday as early voting gets underway in some parts of the state:

“The proposed amendment grants the state authority to impose higher income-tax rates on higher income levels, which is how the federal government and a majority of other states do it. The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the ‘flat tax,’ that requires all taxes on income to be at the same rate. The amendment does not itself change tax rates. It gives the state the ability to impose higher tax rates on those with higher income levels and lower tax rates on those with middle or lower income levels. You are asked to decide whether the proposed amendment should become a part of the Illinois Constitution.”

The initial tax brackets were set by the General Assembly last year in passing the issue on to voters this fall, but let’s repeat. Taxes will remain the same or lower for all those making $250,000 or less — 97 percent of state taxpayers. Only the top 3 percent will pay more, maxing out at a top tax bracket paying just under 8 percent for those making $1 million a year.

It doesn’t tax retirement income. It doesn’t send millionaires and billionaires fleeing from the state.

“Don’t believe the lies and the misinformation that are being spread,” said Quentin Fulks, executive director of Vote Yes for Fairness, the advocacy group that organized the virtual rally. “The fair tax does not tax retirement income. The fair tax does not give the legislature new abilities that they don’t already have. These are all tactics from the other side that are working for millionaires and billionaires and the wealthiest of Illinois to protect their bottom line.”

Now, in the interest of full disclosure, let’s point out that Vote Yes for Fairness is the group that Gov. Pritzker has contributed millions of dollars to. Pritzker has insisted, from the moment he laid out his proposal for a fair tax 18 months ago, that as a billionaire he doesn’t feel it’s right that he pays the same flat 4.95 percent rate on income taxes as an average family taking in $60,000, much less someone making the minimum wage. Anyone making more than $250,000 ought to pay a little bit more — more so than ever in the current economy.

In that, Pritzker is the exception that proves the rule about the rich and powerful using their money and influence to alter tax policy in their favor. He contributed millions to give the fair tax a fair hearing precisely because he knew millionaires and billionaires would be doing the same to fight it.

We intend to zoom back in on those billionaires in a Daily Debunk next week. For now, don’t believe their tripe.