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<body class='hmmessage'><div dir='ltr'>Progressive Tax being introduced in Illinois.<br> <BR><div><hr id="stopSpelling"><br><br>
<title>Rep. Naomi Jakobsson's Newsletter</title>
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<div style="text-align: left; color: rgb(112, 112, 112); line-height: 100%; font-family: Arial; font-size: 10px;">Legislative Update<br>
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<span style="font-size: 24px;"><span style="font-family: trebuchet ms,helvetica,sans-serif;"><span style="color: rgb(255, 255, 255);">Representative Naomi Jakobsson</span></span></span>
<span style="font-size: 18px;"><span style="font-family: trebuchet ms,helvetica,sans-serif;"><span style="color: rgb(255, 255, 255);"><br>103rd District, ILLINOIS</span></span></span></h1>
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<div style="text-align: justify; color: rgb(80, 80, 80); line-height: 150%; font-family: Arial; font-size: 14px;"><font face="arial, helvetica neue, helvetica, sans-serif">Dear Friends & Colleagues,</font><br>
<br>
<font face="arial, helvetica neue, helvetica, sans-serif">As you might have read in several news articles, there is quite a strong discussion over the possibility of implementing a progressive income tax in the state of Illinois, </font><span style='font-family: arial, "helvetica neue", helvetica, sans-serif;'>rather than the current flat tax rate. </span><font face="arial, helvetica neue, helvetica, sans-serif">There is a lot of misinformation and false assumptions being spread, both by news publications and Illinois think tanks, about the adoption of a fair tax system and the progressive income rates I have proposed. Tax policy and rates are complicated issues that are sometime not fully understood, but this does not justify the spreading of inaccurate information in an attempt to paint the proposal as a "tax increase" on the citizens of Illinois. <br>
<br>
In order to provide some clarification and truth to the matter, I share with you the following, in hopes that it will provide some honest insight on my proposal. </font><br>
<br>
<strong style='font-family: arial, "helvetica neue", helvetica, sans-serif; font-size: 14px;'>Progressive Income Tax</strong><br>
<div style="text-align: justify; color: rgb(80, 80, 80); line-height: 150%; font-family: Arial; font-size: 14px;">
<span style="text-align: left;">Proposed Graduated Income Tax Schedule</span><sup style="text-align: left;">*</sup></div>
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<sup>* </sup>Incomes cited are the numbers that would appear on line 11 of form IL-1040 or on line 51 of schedule NR. Under present law your tax is computed as 5% of whichever number is applicable as explained in those forms. I propose the following alternative schedule that would replace the flat 5%. <br>
<br>
For the first $18,000 of income, 3%<br>
For the next $18,000 of income, 4%<br>
For the next $22,000 of income, 5%<br>
For the next $37,000 of income, 6%<br>
For the next $101,000 of income, 7%<br>
For the next $304,000 of income, 8%<br>
For the next increment of income above a total of $500,000, 9%<br>
<br>
What you really want to know is how much total tax you will pay under this schedule given your level of income. Let’s do a sample calculation. Suppose your income is $25,000. Your tax would be calculated as 3% of the first $18,000 ($540) plus 4% of the next $7,000 ($25,000-$18,000), which would add $280. Your total tax would be $280 plus $540 or $820. Your <em>effective </em>tax rate would be $820/$25,000 or 3.28%. Under the current schedule you would have paid $1,250, or $430 more. <br>
<br>
A great web page showing how a progressive tax works in general is <a style="color: rgb(51, 102, 153); font-weight: normal; text-decoration: underline;" href="http://ilga.us2.list-manage2.com/track/click?u=5c70ba5416314aadbb41ea30e&id=f6d704551e&e=c62b43f0d9" target="_blank">https://www.khanacademy.org/economics-finance-domain/core-finance/taxes-topic/taxes/v/tax-brackets-and-progressive-taxation</a><br>
<br>
The table below provides the effective tax rates at different income levels and the difference between your tax under the current schedule and your tax under my proposed plan.<br>
<br>
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Income Level</td>
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Effective Tax rate</td>
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Tax Under Jakobsson Progressive Schedule</td>
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Tax Under Current Flat Tax</td>
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Difference under progressive tax</td>
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$18,000</td>
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3%</td>
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$540</td>
<td style="width: 118px; border-collapse: collapse;">
$900</td>
<td style="width: 118px; border-collapse: collapse;">
$360 less</td>
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$36,000</td>
<td style="width: 118px; border-collapse: collapse;">
3.5%</td>
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$1260</td>
<td style="width: 118px; border-collapse: collapse;">
$1,800</td>
<td style="width: 118px; border-collapse: collapse;">
$640 less</td>
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$58,000</td>
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4.1%</td>
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$2378</td>
<td style="width: 118px; border-collapse: collapse;">
$2,900</td>
<td style="width: 118px; border-collapse: collapse;">
$522 less</td>
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$95,000</td>
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4.7%</td>
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$4465</td>
<td style="width: 118px; border-collapse: collapse;">
$4,750</td>
<td style="width: 118px; border-collapse: collapse;">
$285 less</td>
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$196,000</td>
<td style="width: 118px; border-collapse: collapse;">
5.9%</td>
<td style="width: 118px; border-collapse: collapse;">
$11,564</td>
<td style="width: 118px; border-collapse: collapse;">
$9,800</td>
<td style="width: 118px; border-collapse: collapse;">
$1,764 more</td>
</tr>
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$500,000</td>
<td style="width: 118px; border-collapse: collapse;">
7.2%</td>
<td style="width: 118px; border-collapse: collapse;">
$36,000</td>
<td style="width: 118px; border-collapse: collapse;">
$25,000</td>
<td style="width: 118px; border-collapse: collapse;">
$11,000 more</td>
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$2,000,000</td>
<td style="width: 118px; border-collapse: collapse;">
8.5%</td>
<td style="width: 118px; border-collapse: collapse;">
$170,000</td>
<td style="width: 118px; border-collapse: collapse;">
$100,000</td>
<td style="width: 118px; border-collapse: collapse;">
$70,000 more</td>
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<br>
The table above can be used to calculate your tax whatever your income is. Suppose for example, you make $41,000 per year. Your tax will be the tax on the first $36,000 ($36,000 x 3.5%, or $1260) plus 5% on your income over $36,000 ($5,000 x .05 or $250), for a total of $1,510. The current flat tax takes from you $2,050, or $540 more than the progressive tax schedule.<br>
<br>
I also estimate that this schedule will raise about 15% more revenue than the current flat tax. <br>
<br>
<img width="400" height="285" align="none" style="border: 0px currentColor; width: 400px; height: 285px; line-height: 100%; text-decoration: none; display: inline;" src="https://gallery.mailchimp.com/5c70ba5416314aadbb41ea30e/images/repjak17f441b.jpg"><br>
<br>
<strong>Affordable Healthcare Act</strong><br>
<br>
As Americans continue to enroll in the healthcare marketplace as provided through the Affordable Health Care Act, the Champaign County Health Care Consumers are hosting a presentation and panel discussion for more information.<br>
<br>
Organized by the "greater" Beta Chapter of Kappa Alpha Psi, the CCHCC's Executive Director, Claudia Lennhoff, will be presenting an overview of the Affordable Care Act and the new Health Insurance Marketplace. Also included is a panel discussion with UIUC faculty members after the presentation.<br>
<br>
What: Presentation and Panel Discussion on the Affordable Healthcare Act<br>
Title: " The Truth Behind Obamacare"<br>
When: Wednesday, October 16, 2013 at 6 p.m.<br>
Where: Levis Faculty Center - 919 W. Illinois St., Urbana<br>
<br>
<strong>Illinois 2-1-1 </strong><br>
<br>
2-1-1 is an easy to remember telephone number that connects callers with free information and referrals for community services, including health and human services, governmental agencies, non-for-profit organizations and much more. <br>
<br>
The service is staffed 24/7 by trained staff and volunteers who will listen to a situation and refer you to the most appropriate source or service to assist you. Other great points of 2-1-1 include:
<ul>
<li>
Reduces time, confusion and frustration when searching for assistance</li>
<li>
Creates efficiency by eliminating service repetition and duplication</li>
<li>
Provides assistance for callers who are homeless, in an abusive relationship, financial crisis, and many more</li>
<li>
Links victims of disasters with emergency services, but also non-emergency information such as debris removal</li>
</ul>
To Access 2-1-1 services, simply dial 2-1-1. For more information, visit www.211illinois.org, or call (309)-827-4005. <br>
<br>
<img width="300" height="170" align="none" style="border: 0px currentColor; width: 300px; height: 170px; line-height: 100%; text-decoration: none; display: inline;" src="https://gallery.mailchimp.com/5c70ba5416314aadbb41ea30e/images/2_1_1IL4_color.jpg"><br>
<br>
<span style='text-align: justify; font-family: arial, "helvetica neue", helvetica, sans-serif;'>For more information on any of the issues above, please contact my Constituent Service Office at </span><a style='text-align: justify; color: rgb(51, 102, 153); font-family: arial, "helvetica neue", helvetica, sans-serif; font-weight: normal; text-decoration: underline;' target="_blank">(217) 373-5000</a><span style='text-align: justify; font-family: arial, "helvetica neue", helvetica, sans-serif;'>. I represent the 103rd District, which includes most of Urbana and Champaign.</span></div>
<br>
<span style="font-family: arial,helvetica neue,helvetica,sans-serif;"><span style="font-size: 14px;">Thank you for your support. I will continue working on important issues that affect the people of the 103rd District. Please let me know if there are any topics you would like addressed in future newsletters, and of course feel free to contact me at any time regarding state and district affairs.<br>
<br>
Sincerely,<br>
<br>
<img width="291" height="67" align="none" style="border: 0px currentColor; width: 291px; height: 67px; line-height: 100%; text-decoration: none; display: inline;" src="https://gallery.mailchimp.com/5c70ba5416314aadbb41ea30e/images/1_Signature.JPG"><br>
<br>
Naomi Jakobsson</span></span></div>
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</strong><span style="color: rgb(255, 255, 255);"><span style="font-family: trebuchet ms,helvetica,sans-serif;"><strong>CONTACT</strong></span><br>
<br>
<span style="font-family: trebuchet ms,helvetica,sans-serif;">Rep. Naomi Jakobsson<br>
206 N. Randolph St. Suite 120<br>
Champaign, IL 61820<br>
Phone:
217-373-5000</span></span><br>
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<a style="color: rgb(51, 102, 153); font-weight: normal; text-decoration: underline;" href="mailto:naomi@naomijakobsson.com?subject=Newsletter%20Response"><span style="color: rgb(255, 255, 255);">naomi@naomijakobsson.com</span></a></span></div>
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