(NNPA) Blacks in America pay their taxes without protest nor demands for equal representation. We do this to a serious fault. We get nothing in exchange for giving our few and precious capital resources. It is, in effect, colonialism. Our federal and local governments tax us in a manner that is supposed to provide services and fair trade. However, the many billions of dollars spent by our federal and local governments are denied to our businesses. Our unemployment doubles or triples that of Whites because of this. Our businesses cannot grow at a representative rate and, thus, we cannot create jobs for our population. Our quality of life does not have a chance under such a system. We must start demanding more and refusing to go along with this economic exploitation.
The Illinois Black Chamber of Commerce has done an analysis of how this system works. The State of Illinois is about to raise its state income tax from 3 percent to 5.25 percent. This will have a greater impact on the exploitive system against a certain segment of the population – us. The following is their take on this and the National Black Chamber of Commerce endorses their analysis.
The effect of an Illinois Income Tax increase on the Black Community Illinois is considering increasing the Income Tax rate from 3 percent to 5.25 percent. This document is an attempt to estimate the effect on this increase on the Illinois Black Economy.
1. Governor’s Estimated 2011 Illinois State Income Tax Receipts: $8.6B
2. Total Illinois Households – 4.8M
3. Total Black Households – 676,000 or 14 percent
4. Total Average Income per Household - $56,000
5. Average Income per Black Household - $35,000
6. Yearly State Income Taxes paid by Black workers @ 3 percent – $774-$860M or 9-10 percent
7. Yearly State Income Taxes paid by Black workers @ 5.25% – $1.35B-$1.50B
Economic Effects of Increased Taxes on the Black Community
If the Illinois State Income Tax rate increases from 3 percent to 5.25 percent, the Black community would pay an additional $580M to $645M in state taxes every year. This means the Black community that is already financially stressed would lose approximately $600M in purchasing power every year or $2.4B in four years.
What are Blacks getting for this investment?
The majority of this $2.4B is going to pay other people’s bills. Even though Blacks contribute approximately 10 percent of State Incomes Taxes, a larger percentage of sales taxes and a much larger percentage of lottery purchases, the State of Illinois does very little business with Blacks likely less than 1 percent of spend.
Martin Luther King once said that “Of the good things in life the Negro has half; of the bad things he has a double share”. That still holds true today for our people.
If jobs come from small business and the State and others are not doing business with our businesses, where are our jobs supposed to come from? Unless the State starts to do business with Blacks in proportion to our population this is a bad financial deal for Blacks. The Illinois Black Chamber of Commerce says that there should be NO TAXATION WITHOUT PARTICIPATION. We urge our Representatives to look at this deal carefully. Taking $2.4B from working Blacks to subsidize others is not going to help us rather it will damage an already fragile community.
Yes, the state legislature should vote against this tax increase unless the state will set aside the $200 million in procurements for Black owned businesses. That is the only way to make this taxation representative of the Black population of Illinois. This is just Illinois. We should do such an analysis for each and every state in the nation. Likewise, we need to do it for the federal government as well. Why are our economic indicators the lowest of all ethnic groups in the nation? A big contributor to that fact is right here. Our levels of government are economically sucking on us like the British did the 13 colonies – that led to a revolution. Let’s correct this so we don’t have to do anything drastic. The change must come or we will continue to just lay in the abyss.
Your legislative Black caucus should start understanding this and hopefully, one day, our Congressional Black Caucus will have a clue about this situation and start progressive action. Kudos go to the Illinois Black Chamber for this analysis. Each Black chamber should do such an analysis and share it throughout their respective state. The time for ECONOMIC EQUITY has come!
Mr. Alford is the co-founder, President and CEO of the National Black Chamber of Commerce. Website: www.nationalbcc.org. firstname.lastname@example.org. www.twitter.com/nationalbcc www.nbccbids.com