Village Trustee Signs Letter Opposing Progressive Income Tax

GLENVIEW, IL — Trustee John Hinkamp last week signed an open letter opposing a progressive income tax structure. The member of the Glenview Village Board was among nearly 50 elected officials from around Illinois to endorse a letter calling on Gov. JB Pritzker to block an amendment lifting the state's constitutionally mandated flat tax.

Pritzker campaigned on the plan, which he calls a "fair tax," ahead of his 15-point victory over former Gov. Bruce Rauner in November. The proposed amendment does not specify rates, but the governor claims his proposed tax rates would manage to raise $3.4 billion from the richest 3 percent of taxpayers while keeping the same rates for 97 percent of filers. Supporters said the additional revenue is needed to avoid painful spending cuts and make progress paying down the state's $134 billion unfunded pension liability.

But instead of helping to stability the state's finances, the open letter argues such an amendment would bring more volatility. Lawmakers would be left to their own devices to pass whatever rates they want "by creating division and punishing hard work," according to the letter.

"All evidence shows a progressive tax will make it easier to raise taxes and will create instability that will make it harder to govern, hurt businesses, damage Illinois' economy and speed the exodus of hardworking Illinoisans," it said. Illinois flat income tax is "one of the few remaining competitive advantages" the state has and must be preserved, according to the letter.

"History has shown state politicians can't be trusted to keep taxpayers' best interests in mind," it said, "so we ask that you pledge to oppose a constitutional change that would allow for this tax structure."

The open letter was distributed by the conservative Illinois Policy Institute. The first listed signatories on the letter are the group's CEO, John Tillman, and Greg Baise, former CEO of the Illinois Manufacturing Association and current chief a group established to lobby against graduate income tax rates called Ideas Illinois.

Hinkamp was first elected to the village board in 2013 and was re-elected to a second term in 2017. He has not responded to a request for comment regarding his views on graduated income tax. According to the village, Hinkamp has spent most of his career in the derivatives broker. He is currently is a vice president with the firm ABN AMRO Clearing Chicago, according to the Financial Industry Regulatory Authority.

Other suburban signatories on the May 8 open letter from "Illinois influencers" include Deer Park Trustee David Lemme, who is incorrectly listed as a Deerfield Trustee, Mettawa Trustee John Maier, Round Lake Beach Mayor Richard Hill, Vernon Hills Trustee Craig Takaoka and members of the county boards in McHenry, Kendall and Kankakee counties.

The Illinois Senate passed Senate Joint Resolution Constitutional Amendment 1 on May 1 following an abbreviated committee hearing process. The bill, which as written would allow lawmakers to create new taxes for different types of income as well as different rates for different levels of income, awaits a hearing the in House Revenue and Finance Committee. Its backers are aiming to get it approved before the end of this month's legislative session in order to appear on the November ballot. It must be approved by 60 percent of members of both chambers as well as 60 percent of voters.

Two north suburban Democrats in the Illinois House, where Speaker Mike Madigan has only a three-vote cushion to pass the measure, signaled last week they will not support the amendment as currently written. Jonathan Carroll, of Northbrook, and Sam Yingling, of Grayslake, each said the proposal failed to address the structural issues in the state tax system, including an over-reliance on property tax revenue.

"I want us to change how we tax in Illinois," Carroll said, in a statement after he was quoted as a "hard no" vote on the amendment. "I'd rather take our time and do this right and not rush such an important policy change."

"Illinois' reliance on an abusive and regressive property tax system is a major factor for growing income inequality. It threatens families’ sense of security," Yingling said, in a letter to the editor published in the Chicago Tribune. "The current proposals do not adequately address the crushing burden that our property tax system places on homeowners. I will be a 'no' vote unless adoption of a progressive income tax ends the state’s regressive and abusive property tax system."

Related:

• State Income Tax Constitutional Amendment Passes Senate Committee
• How Much Would You Pay In Illinois Income Tax Under Pritzker Plan?
• Pritzker, Family Under Federal Criminal Investigation Over Property Tax Appeal: Report
• New Proposed State Income Tax Rates Unveiled By Gov. JB Pritzker
• Gov. JB Pritzker's Proposed Budget Increases Risk Of Junk Status: Ratings Agencies