Right now, some in Illinois are in favor of the proposed “Fair Tax.” They feel it will mainly affect the wealthy and aren’t worried, but some experts think they should be! Many individuals fear that if voters vote in favor of removing flat tax protection in the state, there will be major fallout.
More Power
While some people find the Fair Tax to be an empowering idea, others think the power will be going to the wrong place: state lawmakers. They feel that abolishing flat tax protection will enable lawmakers to target senior citizens’ retirement income. They’re also concerned about a possible snowball effect, with one new tax leading to another and another.
Unfair
People have mixed feelings about subjecting the wealthy to higher taxes. And, while there are some who think it’s fair for higher-earners to pay higher taxes, others are concerned about the higher tax rates they may be subjected to under the new law. Its proposal includes raising taxes for anyone earning over $250,000.
Timing
Even some of those who were initially for the
Fair Tax are changing their tunes in light of the COVID-19 pandemic. They’re
concerned that, with all the fallout the state is already facing, implementing
the new tax could cause even more devastation. However, there is a possibility
that, in light of recent events, lawmakers may withdraw their amendment.
Ultimately, unless a withdrawal happens,
no one will know the outcome of this proposal until November 3rd. However, in
case it does end up going into effect, taxpayers who think they may be affected
are encouraged to speak with their financial advisors. Being prepared to
minimize any damage that may occur is always wise. Plus, almost everyone could
use a little financial advice during these unprecedented times- whether the fair
tax is passed or not.