“DON’T TRUST THE POLITICIANS THE THAT CREATED THIS MESS. WHEN THEY TALK ABOUT REVENUE, IT MEANS HIKE OUR TAXES.” – ALLEN
The current flat tax is one of few economic advantages that Illinois enjoys.
- • The top tax rate under the Democrat plan is 9.75 percent
- • Businesses filing under the individual income tax rate also pay a 1.5 percent corporate personal property tax replacement tax
- • In total, the top rate on businesses and individuals will be 11.25 percent.
- • Illinois’ top tax rate will be the 2nd highest in the country trailing only California at 13.3 percent.
This is a tax increase contrary to claims by the sponsors who pretend that this is a tax cut. Under Illinois law, the individual income tax rate will be reduced to 3.25 percent in the future so their lowest rate of 3.5 percent on the graduated scale means that every single Illinois taxpayer will see an INCREASE on their tax bills.
House Bill 689: Illinois Income Tax Act
Summary of fiscal Impact from the Department of Revenue:
Economic Consequence of the Tax Increase in the First Four Years
- Total Private Employment declines by more than 20 thousand jobs;
- More than 43 thousand additional people move out of Illinois;
- Real Gross Domestic Product contracts by $1.9 billion.
After 14 years of implementation of this tax policy (year 2030) the main economic effects of this tax policy are:
- Disposable Personal Income decreases $2.8 Billion per year compared with the baseline scenario (current conditions and economic trend).
- Real Gross Domestic Product of the state decreases $1.7 Billion compared with the baseline scenario (current conditions and economic trend).
- Total Employment decreases almost 18,000 jobs compared with the baseline scenario (current conditions and economic trend).
- Population and Labor Force decrease compared with the baseline scenario (current conditions and economic trend). This is a result of increased out-migration due to higher tax burden.