Due to its poor financial health and lagging economy, Illinois carries unique economic and fiscal risks from a prolonged market downturn or recession. The state must act now to mitigate harm from COVID-19.View Report
Illinois doubled the gas tax in 2019, which pushed it to No. 3 in the nation for highest average gas tax.
Illinois Gov. J.B. Pritzker’s ‘fair tax’ would raise Illinois business taxes to the highest in the nation as neighboring Indiana cuts taxes to draw businesses across the border.
Illinois politicians are already talking about taxing retirees, adding “surcharges” and city income taxes if they can convince voters to abandon the Illinois Constitution’s flat tax protection and give lawmakers greater taxing power.
The progressive tax amendment on the ballot Nov. 3 removes the constitutional prohibition on multiple taxation, in addition to removing the flat tax protection.
Pritzker has been pushing hard for a progressive income tax amendment as a way to generate $3.7 billion for state spending.
Chicago leaders have been unable to finish developing valuable land after 23 years and $331 million in taxes, but convinced state leaders more time and money were needed.
Income taxes rose 32% for individuals and 33% for corporations in 2017, raising Illinois’ total tax burden to at least sixth highest from 10th highest. More than $1.2 billion went to pensions and debt.
Gov. J.B. Pritzker and Illinois lawmakers agree that when taxes are too high, not even a casino in the heart of Chicago can make money.
Passing the progressive tax would empower state lawmakers to go after seniors’ retirement income.
Illinois could be the next state to tax retirement income if voters approve the progressive income tax in November.