For each percentage point drop in the private sector’s share of the state economy, Illinois household incomes fall by over $3,000 on average. Unfortunately for Illinoisans, the private sector’s share of the Illinois economy has dwindled as government’s share – enabled through tax-funded spending – has risen to 25 percent.
In 2016, Chicago and Cook County officials approved new tax and fee hikes that will hit already overburdened residents. A taxpayer bill of rights could prevent politicians from constantly nickel-and-diming residents to make up for budget shortfalls.
Chicago City Council expanded its 9 percent amusement tax to include businesses subscribing to satellite television – another way to nickel and dime the most taxed residents in the state.
A repeal of the federal estate tax would make it imperative that Illinois get rid of its own state death tax to avoid losing even more residents and income to other states.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.