In a bold statement, Chicago’s Chief Financial Officer Jill Jaworski criticized Illinois’ current tax structure as a fundamental injustice, dubbing it the “crime of the century.”
During her appearance at the City Club of Chicago, she addressed the glaring disparity in tax burdens, particularly highlighting that individuals earning $25,000 or less pay approximately 19.4% of their annual income in state and local taxes, while those making over $250,000 only pay around 11.5%.
Jaworski advocated for a graduated income tax and suggested extending the state sales tax to encompass professional services as potential remedies to this inequitable situation.
“The overall tax burden should be greater for higher-income earners,” she asserted. “But in Illinois, the tax structure is backwards, and it makes no sense at all.”
She further elaborated on the limitations faced by the state, stating, “We’re not able to put in any kind of graduated taxes. We’re not able to put new taxes on personal income or corporate income, all the kinds of things that could alleviate this regressivity.”
For nearly four decades, Jaworski has observed Illinois evolve from a politically balanced region to one that heavily leans Democratic, yet she argues that the tax system does not align with the state’s progressive values.
“We need to make changes to fix this. We can do much, much better,” she urged, calling upon government, civic, business, and community leaders to collaborate with the state Legislature to address this pressing issue.
Historically, Chicago mayors and their finance teams have advocated for broadening the sales tax to include professional services, a proposal that has yet to gain traction in Springfield.
Despite potential annual revenue of $305 million for the city, previous efforts have faltered.
Jaworski pointed out that the city’s high sales tax rate can be attributed to a narrow tax base that currently only applies to goods.
She noted a significant shift in consumer spending patterns from the 1950s, when 70% of expenditures were on goods, to a contemporary situation where just 50% is on goods, leaving the other half dedicated to services, excluding health care and housing services.
“I have a gym membership. I get a massage every month. I get my nails done. I get my hair done,” she said. “I consume a lot of services. … I pay no taxes on any of that.”
Jaworski emphasized that higher-income individuals like herself ought to contribute through taxes on luxury services.
“Like most people sitting in this room, I can afford to pay taxes on the activities that I engage in that are, frankly, luxury activities. And I should be paying taxes on them,” she indicated.
This current tax imbalance, according to her, is fundamentally regressive and unjust, placing a heavier tax burden on those who are already struggling.
In a contrasting discussion about the state’s sales tax, Jaworski pointed to the 1% sales tax on groceries that was recently eliminated.
If the City Council fails to renew this tax by October 1, it could result in an additional $80 million deficit for the city.
Acknowledging the sensitive nature of this tax, which has invoked strong reactions among the public, she emphasized that reinstating the tax would only cost an average Chicagoan $60 more annually and would exempt Supplemental Nutrition Assistance Program recipients.
The discussion around tax reform is particularly relevant following Governor JB Pritzker’s unsuccessful 2020 attempt to shift to a graduated income tax, which faced significant opposition from wealthy opponents like billionaire businessman Ken Griffin.
Jaworski’s comments underscore the urgency for Illinois to reform its tax structure to ensure equity across income levels and better reflect the values of its residents.
image source from：chicago
