States with no income tax have something Illinois doesn’t: jobs

The average unemployment rate for states without an income tax is 6.6 percent. Illinois has the nation’s second-highest unemployment rate – ringing in at 9.5 percent, or nearly three full percentage points higher than states that don’t tax income.

Ben VanMetre
Senior Budget and Tax Policy Analyst

Proponents of another multibillion dollar tax hike in Illinois claim that swapping out the current flat rate income tax with a progressive tax would work wonders for our state’s economy. But Americans for Prosperity recently put together some data showing why that claim rings hollow.

The average unemployment rate for states without an income tax is 6.6 percent. Illinois has the nation’s second-highest unemployment rate – ringing in at 9.5 percent, or nearly three full percentage points higher than states that don’t tax income.

So if you think a progressive income tax will have a positive impact on jobs in Illinois, think again. The current progressive tax plan floating around Illinois would destroy at least 65,000 jobs.

Facing some of the nations’ highest taxes and unemployment rates, many Illinoisans are already struggling to pay for the basics, such as food and housing, and have little leftover at the end of the month to save for the future. Anti-growth policies that would destroy even more jobs in Illinois are the last thing the state needs.