On October 5, 2017, the Federal House of Representatives passed its 2018 budget resolution by a vote of 219-206, reaffirming GOP lawmakers commitment to bring forth tax reform. The justification for tax reform isn’t simply the code’s convoluted structure, but history has shown that tax reform spurs job and economic growth. It is not a simple task to balance reform and the federal deficit, but it is important for Illinoisans to know how proposed changes will affect them financially.
The federal tax code originally started with 400 pages and has grown to a monstrosity of 75,000 pages containing 4 million words. The current GOP Tax reform plan seeks to consolidate the federal government’s seven tax brackets into three, reduce tax rate burdens, eliminating some benefits and deductions, and close loopholes that are contributing to the federal deficit. As with any government discussion focused on policy changes advocates and lobbyists fighting to keep their perks eventually become winners or losers.
A deduction up for repeal or adjustment is the State and Local Tax deduction (SALT). SALT allows taxpayers to deduct state and local taxes paid from their personal income that is subject to the federal income tax. The SALT deduction is extremely important to taxpayers in states that have both high state and local taxes. The Tax Policy Center completed a study which indicated that a complete repeal of the SALT deduction would increase federal revenues by $1.3 trillion over the next 10 years.
In response to federal tax reform discussions, the Heartland Institute hosted a guest panel to weigh in on reform proposals. When you have an opportunity I encourage you to view the panel discussion here.
Following the conclusion of each legislative session, I always put together a Legislative Update to provide constituents in the district with information on many of the issues dealt with over the past year and let you know more about what is going on in the 69th District. For those of you who haven’t yet picked up a printed copy of the update at many of the events my staff and I attend throughout the year, please feel free to call the district office at (815) 547-3436 to request a copy. Otherwise, please click here to view a digital copy of the legislative update which can be found on my state website at joesosnowski.org.
Upswing in Support by Millennials for School Choice
Support for school choice is growing, most significantly among millennials. A poll conducted by the Chicago-based GenForward showed school choice is favored by millennials across a wide variety of demographics, while a previous poll conducted by the Beck Institute in January 2017 also found three-fourths of millennials favor school choice opportunities.
Both studies illustrate the growing support for increasing school choice programs, such as vouchers, scholarships, and education saving account opportunities. This demonstrates a clear trend of increasing support for educational choice. Rather than forcing students to be limited by a zip code or by their socioeconomic status, families have the opportunity to choose the school that offers the unique education their students need.