New report shows flat income taxes can also redistribute tax burden

A new analysis found that achieving a -fair- state income tax system is more complicated than the debate between a flat tax rate and a graduated rate would suggest. The Policy Spotlight, titled The Earth isn-t Flat, and Neither is Illinois- or any other state-s- Income Tax , discusses the many factors that determine state personal income tax liabilities and demonstrates that graduated tax rates are not the only way to achieve a progressive tax system. The report is co-published by the University of Illinois Chicago's Government Finance Research Center and the University of Illinois System's Institute of Government and Public Affairs. A research brief, summarizing key takeaways of the report, can be found online. -Oversimplifying tax-policy choices can lead to symbolic victories that do little to promote fairness,- said David Merriman, a co-author of the Policy Spotlight and the James J. Stukel Presidential Professor of Public Administration in the College of Urban Planning and Public Affairs at UIC. -Switching from a flat to a graduated tax-rate system will not automatically promote progressivity, and our research shows that even a flat tax system can allow tax burdens to rise with income. The authors looked to Illinois to illustrate this point.