Going out of business

The Tax Foundation released an analysis of the proposal to dump Illinois’ fair, flat tax in favor of a progressive tax. The conclusion: a progressive income tax would deliver a devastating blow to Illinois’ already struggling business climate. Illinois had the 17th most competitive tax climate for businesses just a few years ago. But the state’s rank plummeted 14...

The Tax Foundation released an analysis of the proposal to dump Illinois’ fair, flat tax in favor of a progressive tax. The conclusion: a progressive income tax would deliver a devastating blow to Illinois’ already struggling business climate.

Illinois had the 17th most competitive tax climate for businesses just a few years ago. But the state’s rank plummeted 14 spots in the Tax Foundation’s “State Business Climate Index,” to 31st from 17th, after Illinois lawmakers passed a “temporary” tax increase on individuals and businesses in 2011.

Illinois’ ranking would take a second tumble if lawmakers pass a progressive income tax plan that has been proposed. According to the report, a progressive income tax would drop Illinois’ business tax climate ranking down to 44th.

This would be a devastating blow to Illinois, which is projected by Moody’s Analytics to be 50th in job growth in 2014.

Illinois already has the fourth-highest unemployment rate in the nation, and spent most of 2013 with the second-highest rate. The more than 1 million Illinoisans who are currently unemployed or underemployed need a state that is competing for jobs and growth, not chasing it away.

A progressive tax hike would be a clear signal that Illinois is going out of business.

Instead of increasing taxes again, politicians should be held accountable for the 2011 tax increase. That means all of us need to hold politicians to their promise to reduce the income tax rate in 2015.