Every Illinoisan would need to see a tax hike to close the deficit and pay for Gov. J.B. Pritzker's promised new spending
CHICAGO (March 8, 2019) – Every Illinoisan would feel the strain of higher taxes if progressive income tax rates were enacted that truly close the state’s $3.4 billion budget deficit. Illinois Policy Institute researchers found Illinois Gov. J.B. Pritzker’s proposed tax rates could not generate enough revenue to fund his spending promises without hitting middle-class Illinoisans with yet another tax hike.
To close the budget gap, analysis from the Institute shows marginal rates would have to begin at 5.19 percent for Illinoisans earning less than $10,000, and would climb up to 8.69 percent for Illinois’ highest earners.
The typical Illinois family would see a tax hike of $269 under this rate structure. These rates would cost Illinois’ economy $14 billion in forgone economic activity and more than 53,000 jobs that will never be created for job seekers.
Meanwhile, in order to fully implement Pritzker’s promised spending of paying down bills, funding a capital plan, investing in K-12 and higher education and pursuing projects in his 2020 budget, the state needs as much as $19 billion in additional revenue.
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