Durbin, Duckworth To Rauner: GOP Tax Plan Will Raise Taxes On Hardworking Illinois Families
Senators Urge Governor Rauner To Oppose Elimination Of State And Local Deduction Proposed By Congressional GOP
WASHINGTON—U.S. Senators Dick Durbin (D-IL) and Tammy Duckworth (D-IL) today pressed Illinois Governor Bruce Rauner to publicly oppose congressional Republican’s proposed elimination of the state and local tax (SALT) deduction as part of their tax plan—a move that would increase taxes on nearly one-third of all taxpayers in Illinois. The state and local tax deduction is used by 44 million people nationwide, including by nearly two million Illinoisans, to avoid being taxed twice on their hard-earned income—once at the state level and again at the federal level.
“You are acutely aware of the budgetary challenges facing our state—eliminating the state and local tax deduction would only exacerbate those challenges by placing downward pressure on the State and local governments to reduce the amount of revenue raised through taxation and by leaving nearly two million Illinoisans with less money in their pockets with which to participate in the local economy and contribute to sales and other consumptions taxes,” wrote the Senators in a letter to Gov. Rauner. “The Republican proposal to eliminate the state and local tax deduction would be devastating for working families and communities across Illinois. Therefore, we urge you to publically oppose the proposed elimination of this vital deduction, and we ask you to provide information on the impact repealing the deduction would have on Illinois families and our state’s economy.”
Illinois has the fifth highest number of taxpayers who claim the state and local tax deductions. Nearly two million Illinois taxpayers claimed more than $24 billion in SALT deductions in 2015, each claiming an average $12,500 in deductions. Of Illinoisans who claim SALT, around 85 percent of them earn less than $200,000 per year.
In Cook County – where there are more taxpayers taking the SALT deduction than in eight states combined – nearly 800,000 residents would be double-taxed on $10.39 billion—averaging over $13,000 of additional taxable income per taxpayer.
Full text of the letter to Gov. Rauner is available below:
October 30, 2017
The Honorable Bruce Rauner
Governor of the State of Illinois
207 State House
Springfield, IL 62706
Dear Governor Rauner:
Congressional Republicans have proposed eliminating the state and local tax (SALT) deduction as part of their recently-released tax plan—a move that would increase taxes on nearly one-third of all taxpayers in Illinois. The state and local tax deduction is used by 44 million people nationwide, including by nearly 2 million Illinoisans, to avoid being taxed twice on their hard-earned income—once at the state level and again at the federal level. We request information regarding how the Republican effort to repeal the state and local tax deduction would impact Illinois families and our state’s economy.
Illinoisans claimed more than $24 billion in SALT deductions in 2015. As the state with the fifth highest number of taxpayers who claim this deduction, Republican efforts to repeal the state and local tax deduction would be uniquely damaging to our state. We have heard from local officials across Illinois who are concerned that eliminating the state and local tax deduction would make it difficult to fund essential local education programs, infrastructure projects, and social services.
You are acutely aware of the budgetary challenges facing our state—eliminating the state and local tax deduction would only exacerbate those challenges by placing downward pressure on the State and local governments to reduce the amount of revenue raised through taxation and by leaving nearly two million Illinoisans with less money in their pockets with which to participate in the local economy and contribute to sales and other consumptions taxes.
Further, according to a recent Price Waterhouse Coopers report prepared for the National Realtors Association, not only would eliminating the SALT deduction raise taxes on Illinois residents, but when combined with other proposed changes under the Republican tax plan, eliminating the deduction also would cause home values to fall by 10 percent on average. For localities across Illinois that have higher-than-average property and income tax rates, the impact on home values could be even more severe.
The Republican proposal to eliminate the state and local tax deduction would be devastating for working families and communities across Illinois. Therefore, we urge you to publically oppose the proposed elimination of this vital deduction, and we ask you to provide information on the impact repealing the deduction would have on Illinois families and our state’s economy. Thank you for your attention to this important issue.
Sincerely,