Budget + Tax

McConnell says he favors allowing states to declare bankruptcy

As Illinois teeters on the edge of a junk credit rating, one key policymaker is floating bankruptcy as a solution.

Pritzker doubles down on progressive income tax, says Illinois needs $3.7B tax hike ‘now more than ever’

Despite a massive national economic contraction, Pritzker is resisting calls to pull a large tax hike from the November ballot.

By Bryce Hill

Federal Reserve throws credit lifeline to near-junk Illinois

The Federal Reserve announced unprecedented plans to directly purchase up to $500 billion in state and local government bonds. States with poorly managed finances, such as Illinois, stand to benefit most, but long-term threats loom without structural reforms.

By Adam Schuster

‘Fair tax’ paves the way to taxing retirement income in Illinois

By granting broad new taxing authority to Springfield, the progressive income tax amendment makes a retirement income tax much more likely – a fact some supporters have acknowledged publicly.

By Adam Schuster

Illinois personal income tax revenue could fall up to $6.6 billion from COVID-19 lockdown

The severe economic downturn brought on by the coronavirus outbreak and measures taken to contain it could cause state personal income tax revenues to fall by 14.7% to 33.8% this year.

By Orphe Divounguy, Bryce Hill

Illinois state, local tax burden ranked highest in nation

Illinois residents pay more of their income toward state and local taxes than any other state’s residents. A progressive income tax proposal on the ballot in November would raise the state’s total tax burden by $3.7 billion.

By Brad Weisenstein

Brad Morin

"They need to focus inward as a state and not look for more taxes to solve their apparent spending problem. Balance the budget, reform pensions."

Illinois moves closer to becoming first ‘junk’ state with negative credit outlook

Illinois’ financial outlook was changed from ‘stable’ to ‘negative’ by two major ratings firms, raising the risk the state’s credit rating will formally fall to non-investment grade status.

By Adam Schuster

Illinois counties consider delaying property tax payments

Delaying property tax payments would give much-needed relief for those struggling without a paycheck during the COVID-19 pandemic.

Why Illinois lawmakers can and should withdraw the progressive income tax hike

State lawmakers in 2019 passed a progressive income tax amendment at the behest of Gov. J.B. Pritzker. Now that coronavirus has ravaged the state’s small business community, they should withdraw the amendment.

By Bryce Hill

Patricia Hill

“This is supposed to be the American Dream for me and my family … I’m holding on to everything I can, but I’m losing because of this house. It’s a nightmare."

Rev. Anton Seals

“There’s a silence among politicians. An apathy, when it comes to property taxes. And a history of mismanagement."

To fight COVID-19 economic harm, Illinois must delay or cancel taxes and fees where possible

Struggling businesses, individuals and families need relief while the economy is shut down. Despite Illinois’ financial woes, leaders can help the recovery by lifting government-imposed financial burdens.

By Adam Schuster

State advises stores to temporarily ban reusable bags, but Chicago’s single-use bag tax remains

Illinois’ grocery stores have told shoppers to leave their reusable bags at home to stop COVID-19’s spread. Chicago’s 7-cent bag tax will continue unless the law is changed.