Legal marijuana has seen nine consecutive months tally at least $100 million in Illinois sales. The state is on pace to double the previous year and exceed $1.5 billion in sales. Still, Illinois’ illegal market churns out higher sales and violence.
COVID-19 prompted $7.5 billion in federal relief, but state revenues were up during the past 8 months. Delayed tax due dates were partly responsible, but revenue even grew where it should have declined. So why should small businesses have to come up with $2 billion more?
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.
With economic challenges driven by the coronavirus ahead, Illinois finds itself missing an important financial tool.
Illinois suffered its sixth consecutive year of population decline in 2019, driven entirely by residents leaving for other states.
Financial stress testing shows Illinois and New Jersey are the most unprepared for the next recession. Both states lack sufficient rainy day funds and struggle with large pension debt.
While the governor has touted his plan as a way to stabilize state tax revenues, it would actually do the opposite.