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
COVID-19 and measures to contain the disease have resulted in unemployment that’s over 50% higher than the worst months of the Great Recession.
As Illinois teeters on the edge of a junk credit rating, one key policymaker is floating bankruptcy as a solution.
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.
A quarter of Illinois’ workers are staring down the economic impacts of a global pandemic.
A new report would have Illinoisans believe that a progressive income tax means tax cuts and economic growth. Illinois lawmakers’ tax-and-spend tendencies and evidence from all 50 states say otherwise.
Illinois will not diverge from its path of poor growth until lawmakers realize the failures of recent tax hikes.
Illinois would have seen above-average growth if the state’s workforce had simply grown on par with the rest of the U.S. economy. Instead, poor policy choices have made the state an economic laggard. Illinois’ slow expansion is likely a product of investment-killing tax hikes.
Illinois is tied for the worst income growth in the entire U.S.
Illinois’ total state economic activity has increased by only 4 percent since 2007, which is lower than the U.S.’ 10 percent GDP growth during the worst decade of the Great Depression.
Illinois’ slow economic growth, made worse by out-migration, needs to be addressed in order to tackle the state’s budgetary problems.