Flat tax? Progressive tax? No tax? Our infographic maps it out nationwide

TAX SNAPSHOT Today in Illinois, every wage-earner pays 5 percent in state income tax. It was 3 percent until January 2011, and is scheduled to drop back to 3.75 percent on Jan. 1, 2015. The 1970 state constitution requires that, if there's a state income tax, it has to be imposed on everyone at the same rate. But a resolution in the Illinois House proposes amending the constitution to allow the General Assembly to consider enacting a graduated income tax in which your tax rate goes up with your income. You'll hear plenty of debate about this issue in the months to come. To get things started, we offer this infographic, which shows the tax systems and rates in other states.

Illinois is among nine states with a flat-rate income tax. Seven states have no income tax. The 34 states with progressive income taxes vary widely in rates and income brackets (Mississippi's top bracket is 5 percent, collected from those who earn more than $10,000; you have to earn $1 million a year to hit California's 10.3 percent top rate). See how we compare here.

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FLAT VS. PROGRESSIVE What's better, a flat tax rate for all or a graduated tax in which the wealthy pay higher rates? Depends on whom you ask. Back in December, we asked two prominent figures in Illinois tax policy for their thoughts. Here is the pro-progressive tax response from the Center for Tax and Budget Accountability and the opposing view from the Illinois Policy Institute. As stated above, you'll be hearing a lot about this in the next few months.

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QUINN RESPONDS Last week we posted an editorial that was highly critical of a plan by Gov. Pat Quinn to withhold $68 million in Illinois income tax proceeds from Illinois municipalities. Taxpayers will feel more hurt at the local level than the state will feel relief from this relative pittance in a $35 billion budget, we reasoned. Quinn's assistant budget director, Abdon Pallasch, tells us how wrong we are in this response.

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SPRINT OR STUMBLE? Illinois lawmakers return to work today in what usually is the home stretch of the spring legislative session. The seven weeks to come will determine whether Illinois begins to drag itself out of the greatest financial crisis in its history or continues to starve essential needs like school funding while shoveling more and more tax dollars into public pension funds that are doomed to insolvency. How high are the stakes? Read our editorial and find out.

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HEY LAWMAKERS! Consultant and World Presidents' Organization member Patricia Bidwill says Springfield should be worrying more about the ways the pension crisis already is violating various provisions of the Illinois constitution. One example, writes Bidwill, is Article X: "The State shall provide for an efficient system of high quality public educational institutions and services." Read Bidwill's view here.

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DAILY TIP-OFF The New York Times-hosted blog FiveThirtyEight gained acclaim for its accurate election predictions in 2008 and 2012. Today it turns its sights to governor's races across the country, and proclaims Gov. Pat Quinn the second most vulnerable governor in the 2014 election based on his 55 percent disapproval rating. However (and this is a big one), "Mr. Quinn is the second most unpopular governor up for re-election in 2014, he is a Democrat in deep blue Illinois. If he runs, he is still considered a favorite to win re-election," it says.

Ever wondered why your property taxes can go up even as your property value goes down? It's a product of a state law that some lawmakers in Springfield want to change. It imposes caps on tax increases but also ties them to the Consumer Price Index. So when inflation goes up, your property taxes can rise accordingly. School districts are adamantly opposed to changing this rule, which they say allows them to keep up with inflation.

The Chicago Tribune today offers a strong rebuke to those who have claimed racism is at the heart of the planned closing of 54 schools in predominantly black and Latino neighborhoods. "The challenge for everyone else in the heart of this heated debate is to be passionate ... and to speak and act responsibly. Don't divide your city,” says its editorial.

And while hydraulic fracturing has turned states like North Dakota into oil producers with booming economies, "fracking" in Illinois remains stuck in a political quagmire in the Capitol. That's bad news to many areas of the state that are desperately in need of the jobs the oil- and gas-extraction method portends.

Find links to these and other Illinois reform news articles in the Daily Tip-Off section of our website.

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PENSION TOWN HALL Reboot Illinois is teaming up with the Daily Herald of Arlington Heights to host an expert pension forum at 7 p.m. April 24 at Wheeling Township Town Hall in Arlington Heights. Panelists are Rep. Elaine Nekritz, Rep. Tom Morrison and Illinois Education Association President Cinda Klickna. Nekritz is sponsor of a comprehensive pension reform bill with bi-partisan support in the House, Morrison is the sponsor of a pension reform bill backed by the Illinois Policy Institute that would move public employees to a 401(k)-style retirement savings plan. Clickna heads the state's largest teachers union.

This promises to be an informative and insightful discussion of arguably the greatest fiscal challenge in the state's history. Seating is limited so advance registration is required. Find out more and register here.

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WE'RE HIRING! We are looking for a director of outreach to work with our partners both on social media platforms and in the communities. See the job description here.  Know anyone who would be a great fit? Pass on this email! 

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