Kay warns 'silent but deadly' taxes will escalate Illinois' outmigration problem
It makes perfect sense to Republican state House candidate Dwight Kay that lawmakers in Springfield have had such a hard time getting the state back on track.
“The premise they’re operating from down there that goes we need more money for this state to run smoothly is all wrong,” Kay told the Metro East Sun. “For one thing, we don’t even know how much money is being spent or what it’s being used for. Increasing taxes and taking more from taxpayers to foot the bill for it is the worst thing that could be happening in Illinois right now.”
Kay’s outrage was sparked by recent news that the Federal Reserve Bank of Chicago supports a plan to raise property taxes statewide by about 50 percent over the next three decades as a means of paying down pension debt.
The DuPage Policy Journal previously reported this computes to an annual increase of roughly $5,000 on a $500,000 home, a rate of accrued revenue over the designated timeframe that is more than enough to erase the state’s massive pension liabilities, according to estimates by a team of economists with the Federal Reserve Bank of Chicago.
“If this happens, people already have an exit strategy in mind,” said Kay, who is running against Rep. Katie Stuart (D-Edwardsville) in Illinois’ 112th District. “Many residents are just waiting to see what happens in November’s election. People finally understand that the Democratic plan to max out the taxpayer to cover up for the mismanagement of (House Speaker Mike) Madigan is just a con. He’s had a hand in everything in this state for the last 40-plus years.”
Illinois homeowners already pay the highest property tax rates in the nation at 2.67 percent of a home’s value, and a statewide proposed increase may not be the only hike many residents will soon be forced to deal with.
Ford, Lake, Kane, Frankfort and Will counties will all have a referendum on the ballot this fall asking voters to weigh in on a proposed 1-percent sales tax hike.
In Will County, the added revenue has been set aside for local school districts, with more than a dozen schools already signed onto the referendum, the Illinois Policy Institute states. The increase would put many Will County residents on par with the 10.25 percent paid by taxpayers in Chicago.
In Frankfort, the sales tax rate would jump from 7 percent to 8 percent.
“I call it the silent tax,” Kay said. “A lot of times when people go make purchases they don’t pay much attention to the tax being charged. I think that’s why politicians turn to it so often. It’s a way of generating significant income without drawing a whole lot of attention to what you've done. It’s a practice that’s silent, but deadly.”
Illinois’ 112th District includes Bethalto, Caseyville, Fairmont City, Glen Carbon, Maryville, Pontoon Beach, Roxana, Shiloh and Swansea.