As the state faces its most pressing budget crisis ever, it is time to rethink how much of its income-tax revenue it can afford to pass back to local governments.
There are now 1.06 million more Americans working than when the recession began. In comparison, there are 232,000 fewer Illinoisans working over the same time period, the second-largest employment gap in the U.S.
The stunning data underscore an important point as power shifts to Governor-elect Bruce Rauner: Illinois cannot raise taxes on a population that is shrinking due to massive numbers of people leaving.
Illinois’ tax code stands in the way of the state’s economic competitiveness. The combination of high tax burdens and a poor tax structure contributes to the loss of jobs and investment to other states. From a place of former economic dominance, Illinois now ranks 45th in gross state product (GSP) growth over the past decade...