Gov. J.B. Pritzker’s estimate of how much his progressive tax proposal would put into state coffers fails to consider that some people will take steps to avoid paying more in taxes, leading to a budget shortfall estimated to be in the billions, according to opponents of the governor’s tax plan.
Pritzker estimated that his proposed tax rates would raise an additional $3.4 billion, largely from a higher rate on millionaires and marginally higher rates on people and small businesses making more than $250,000.
Illinois Policy Institute Chief Economist Orphe Divounguy estimated the proposal would only bring about $1 billion because of the reality that people and businesses would take steps to avoid paying more in taxes, such as increasing itemized deductions to lower their reported income rate.
