Kirk/Cross: Illinois Tax Freedom Day Comes Four Days Later in 2011, Now April 15th
Each Year, Taxpayers Must Work Longer To Pay Taxes before Earning for their Families
CHICAGO-Citing a report showing Illinois taxpayers will have to wait longer than most Americans to observe "Tax Freedom Day," U.S. Sen. Mark Kirk (R-Ill.) and Illinois House Minority Leader Tom Cross (R-Oswego) called today for spending cuts by both federal and state governments.
"Illinois Tax Freedom Day has been pushed back four additional days this year to April 15th. Tax Freedom Day is the day the average taxpayer covers their mounting bills to the government and begins earning for their own family," Senator Kirk said. "Tax Freedom Day comes eight days earlier for people in Michigan (April 7), 10 days earlier in Indiana (April 5) and 11 days earlier in Missouri (April 4). This weakens the future of family incomes against our Midwestern competitors."
"Here in Illinois, we are over-taxed, over-regulated and over-litigated. We are tirelessly pushing for reforms and efficiencies in Springfield to make Illinois a more desirable place to live for its residents," Cross said.
The report issued last week by the non-profit, non-partisan Tax Foundation said that most U.S. taxpayers will reach "Tax Freedom Day" on April 12. Illinois taxpayers will need to work three more days compared to other Americans before their Tax Freedom Day. This year's tax freedom event also is four days later than last year when Illinois Tax Freedom Day came on April 11, 2010. Illinois citizens must now work longer for the government before providing for their families due to the recent 66 percent increase in the individual state income-tax rate.
Tax Day Basics: Taxes Cost More Than Food, Clothing, Shelter Combined
The Foundation calculates Tax Freedom Day annually by measuring the number of days Americans need to work to pay for all their federal, state and local taxes. While most U.S. residents will need to work 102 days to pay all their taxes, Illinois residents have to work 105 days, giving Illinois the ninth latest Tax Freedom Day in the nation. Mississippi had the nation's earliest "Tax Freedom Day" on March 26th and Connecticut will have the latest on May 2nd.
Despite federal tax reductions, the Foundation said Americans will pay more in taxes in 2011 than they will spend on groceries, clothing and shelter combined
Overall, the Foundation said that taxes amount to 27.68 percent of all U.S. income, which is the same percentage of the year that the 102 days from Jan. 1 to April 12 represents, the report said.
As a member of the Senate Appropriations Committee, Senator Kirk is pursing 15 specific financial reforms to help cut spending, lower taxes and reduce borrowing. The proposed reforms include:
• Cutting Congressional and White House budgets by 15%
• Enacting the Bipartisan Deficit Commission spending/entitlement reforms
• Freezing congressional/federal employee pay/hiring
• Banning Pork-barrel Congressional Earmarks
• Canceling the Second F-35 Engine, Joint Forces Command, New Combat Vehicle
• Providing President Obama with a Presidential Line-Item Veto, and
• Establishing a blue-ribbon, bipartisan "Grace Commission II" against government spending, with ‘base-closing commission' powers to submit reform legislation for one up or down House/Senate vote
In the Illinois General Assembly, Representative Cross said he has proposed pension reforms to stabilize the state's systems and the state's long-term budget obligations. House Republicans have also proposed dozens of other pieces of legislation to make Illinois government run more effectively and efficiently.
Illinois Debts Could Push Taxes Higher
Since the State of Illinois is accumulating debts at a very fast rate, the burden of these debts may lead the current state leaders to push taxes even higher. Illinois has accumulated the highest debt and pension liabilities of any Midwestern state, totaling $6,719 per person. This is the seventh highest in America and compares poorly with Indiana ($2,414), Missouri ($2,854), Iowa ($2,410), and Wisconsin ($2,022). Taxpayers in these states face a lower danger of increased taxes than Illinois.
"Budget Deficit Day": May 23rd
The Tax Foundation used taxes that will actually be collected during 2011 to develop its state-by-state breakdown of Tax Freedom Day. Since it did not include the growing federal deficit, the actual cost and size of government is underestimated.
The Foundation did develop a "Federal Budget Deficit Day," which measures the amount that the government would have to collect from taxpayers to pay for all its expenditures for the year. With the federal deficit projected to top $1.4 Trillion this year, the Foundation calculated that "Federal Budget Deficit Day" would arrive around May 23rd, making it the latest deficit-inclusive Tax Freedom Day since World War II.