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A Strategy for Income Tax Reform in Illinois

The fundamental fiscal challenge for state government in Illinois is how to generate revenue to meet both ongoing obligations and emerging needs without putting an unfair tax burden on low- and middle-income families. Voices for Illinois Children has proposed a policy strategy for fiscal reform that links a higher state income tax to a reform package with three components: a larger personal exemption, which would benefit all households and would make the individual income tax structure more progressive; a more generous state earned income tax credit targeted at the working poor; and a state-level child tax credit to provide additional relief for both low-income and middle-income families. This fiscal reform strategy would generate new revenue and improve tax fairness at the same time. The amount of revenue generated and the effects on taxpayers would vary — depending on the income tax rates, personal exemptions, and targeted tax credits in specific reform plans.  Download and read report

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