IL Tax Increases

Over the course of the last week I received multiple letters from my local daycare referral program urging me to contact my state representative to ask him to vote "yes" to a budget increase for our state. This increase hinges on a substantial increase in the state income tax rate. From my understanding, only states with no sales tax have higher rates than IL. And in my area, the sales tax is more than 7.5% on purchases.

This is the letter I sent in response to the cries for me to call my representative.

As a daycare provider who cares for children that utilize the system in place by the state government, I understand the need and importance of human services. As a resident of the state of Illinois I am saddened and frustrated by the inability of our elected leaders to come up with a state budget that makes sense, maintains important programs, and helps make our state fiscally healthy.

However, as a taxpayer, I do not support a tax increase in order to provide many of the services that are in danger of being cut. I have watched many of the families in my care work the system in ways that are unspeakable. The state continues to give them monies in multiple arenas, providing near free daycare, food stamps, housing assistance, schooling, utility payments, and medical care. Many of these “poor” families are able to afford luxuries that I cannot even fathom; because the money that they make is not spent on the necessities that I must spend mine on. One family I cared for received $600 per month in food stamps, WIC coupons, and care packages from the Salvation Army, yet still complained about running out of food money at the end of the month. And I fed their children two meals a day five days a week! I spend less money than that, feed a full capacity daycare group, and my family. I don’t spend less than that because it is easy or fun, but because there simply isn’t enough money to spend more, and pay all the rest of my bills. This same family received a more than $9000 income tax return, courtesy of tax breaks and earned income credits, despite the fact that they paid in less than $1500 in taxes.

When my husband’s hours got cut, I went to the DHS office and was told because I had more than $2000 in the bank, I was not eligible for the services they provided. They didn’t care that my mortgage payment is $1700 a month and once I paid that I wouldn’t be able to afford groceries, the electric bill, or pay NICOR. I had to increase the number of children I cared for in order to make ends meet. The services are based on income levels before taxes. A tax hike would mean I still wouldn’t qualify for any of these services, yet would be left with less money in my check each week.

When my budget doesn’t work out at the end of the month, I have to work out my budget better, not demand more money for watching the children I care for, or insist that my husband get a raise. I have to work with what I am given, and sometimes that means making uncomfortable sacrifices. But I live within my means, and I think that the state, and the people using the services should be required to do the same.

Maybe a drastic cut in funding would encourage (or force!) the service providers to better structure the way they provide services. Institute time limits for receiving services; only allow tax contributors to receive the services; set up penalties for abusing the system. There has got to be a better solution than placing an additional tax burden on people who are not able to utilize the systems that are being paid for.