While Illinois Considers Raising Taxes, Neighbors Plan to Cut

by Wesley Fox While several of Illinois’s neighbors are moving towards cutting taxes to help promote economic growth and job creation, Governor Quinn is pushing hard for an increase in the individual income tax rate to help “solve” Illinois’s budget problems.  If he is successful, Illinois may be the only state in the region that will...

by Wesley Fox

While several of Illinois’s neighbors are moving towards cutting taxes to help promote economic growth and job creation, Governor Quinn is pushing hard for an increase in the individual income tax rate to help “solve” Illinois’s budget problems.  If he is successful, Illinois may be the only state in the region that will raise taxes in the next few years.

The newly elected governors of Iowa, Wisconsin, Michigan, and Ohio promise to lower taxes.  Governor Mitch Daniels of Indiana opposes general tax increases in his state as well.  Illinois is already struggling to compete with other states economically, ranking 48th in economic performance and 47th in economic outlook.  An income tax increase would only put our state at a greater economic disadvantage and continue to push businesses and families out to other states with friendlier policies.

If Illinois is going to turn its economic fortunes around, it must start implementing policies that make it more, not less competitive.  There are ways to balance the budget without raising taxes.  Also check out the Institute’s 2010 Illinois Legislator’s Guide for solutions to help Illinois compete.