Budget + Tax

Illinois state government wastes hundreds of millions of taxpayer dollars

Illinois spending is packed with waste. Nearly 200 examples of wasteful government spending in Illinois, totaling more than $354 million, is detailed in the “The 2012 Illinois Piglet Book,” a report compiled by the Illinois Policy Institute in a partnership with Washington, D.C.-based Citizens Against Government Waste. Each item highlights the decisions of politicians who...

By Benjamin VanMetre

National gas prices average $3 or more for 1,000th straight day

Today marks the 1,000th day in a row the national average price for a gallon of gas was $3 or more. And AAA forecasts the national average will remain above $3 per gallon for at least another thousand days barring a major economic recession. “Paying less than $3 per gallon for gasoline may be automotive history for...

By Hilary Gowins

Illinois’ temporary tax hike: $18 billion later

Myth: The temporary 2011 tax increase was necessary to pay down Illinois’ backlog of bills, stabilize the state’s pension crisis and strengthen its economy. Fact: Since the tax increase was passed, Illinois’ unpaid bills and pension debt have grown, and the state’s economy is among the worst in the nation. Illinois lawmakers in January 2011...

By Benjamin VanMetre

Chicago: highest gas prices of any major U.S. metro area

Chicago has the highest gas prices of any major metropolitan area in the United States. A gallon of gas is now $4.06 on average in Chicago; the national average is $3.56. Though outside factors influence the raw price of gas, one of the reasons Chicago’s prices are consistently among the most expensive in the nation is the additional...

By Hilary Gowins

Progressive tax facts

Several special interest groups and lawmakers in Illinois are pushing to increase taxes by swapping out the state’s constitutionally protected flat rate income tax for a progressive income tax. Advocates for higher income taxes try to disguise the tax hike as something it isn’t. Here are the facts on a progressive income tax: Thirty-one of...

By Benjamin VanMetre

North Carolina tax reformers just getting started

North Carolina is gearing up for another reform effort to enhance the state’s competitiveness. This year, political leaders overhauled North Carolina’s tax environment. Beginning in 2014, the state’s progressive income tax will be replaced with a lower, more competitive flat rate income tax. And the new flat rates are scheduled to decrease even more over the...

By Chris Andriesen

Illinois’ state and local sales tax rates 11th highest in the nation

Illinois’ residents and businesses pay some of the nation’s highest taxes. Illinois has the ninth-highest state and local tax burden per capita, the second-highest property tax burden as a percentage of median home value and the fifth-highest gasoline tax. A recent Tax Foundation study shows that Illinoisans also pay the nation’s 11th-highest combined state and local sales tax rates. The report...

By Benjamin VanMetre

Illinois’ unpaid bills will exceed $8 billion this month

The Illinois General Assembly passed a record income tax increase on individuals and businesses in 2011. And Gov. Quinn promised that it specifically was “designed to pay our bills.” Nearly three years and $18 billion in new tax revenue later, Illinois’ unpaid bills are still growing. Illinois Comptroller Judy Baar Topinka estimates that Illinois’ 2013...

By Benjamin VanMetre

A tax on the rich?

Illinois’ competitive flat-rate income tax is protected in the state’s constitution. But there is a growing movement to increase income taxes in Illinois by swapping out the state’s flat-rate income tax for a progressive tax. The progressive tax plan is being sold as a tax on the rich, but it would hike tax rates on...

By Benjamin VanMetre

Oops — another ‘error’ in Illinois’ pension mess

If Illinoisans needed any more proof that the state’s defined benefit pension systems are unmanageable and dysfunctional, they got it on Aug. 26. Dick Ingram, head of the Teachers’ Retirement System, or TRS, informed Illinois’ pension conference committee that TRS’s actuaries made a mistake in calculating the expected savings of House Speaker Mike Madigan’s proposed pension...

Interactive dashboard: State income tax rates

Illinois’ competitive flat rate income tax is protected in the state’s constitution. But there is a growing movement to increase income taxes in Illinois by swapping out the state’s flat-rate income tax for a progressive tax. The progressive tax plan is being sold as a tax on the rich. But the data tell a different...

By Benjamin VanMetre

Money walks

Nine states with the highest personal income tax rates lost $90.05 billion in taxable income between 2000 and 2010.

By Ted Dabrowski

Moody’s credit downgrades: Illinois, Chicago area, take beating

The recent string of credit downgrades by Moody’s Investors Service should leave little doubt what the rating agency thinks of Illinois’ worsening fiscal crisis. For the past few years the state’s five state-run pension funds have garnered most of the negative attention in Illinois. Moody’s has already designated Illinois’ debt as the riskiest of any...

Credit union offers interest-free loans to Illinois lawmakers during pay freeze

Illinois lawmakers stopped getting paid on Thursday. So did Gov. Pat Quinn, who on July 10 used his line-item veto power to halt lawmaker pay until the General Assembly reaches an agreement on pension reform. But a Rantoul-based credit union has come to their aid, offering interest-free loans to state legislators. According to the State Journal-Register,...

By Hilary Gowins