A report issued by the Anderson Economic Group, and reported on by Crain’s Chicago Business this week, highlights Illinois’ ranking among Midwestern states when it comes to tax rates paid by businesses.
In Illinois, businesses paid a rate of 9.4 percent, which is the highest among other Midwest neighboring states, such as Indiana (7 percent), Missouri (7 percent), Ohio (7.3 percent), Michigan (8 percent) and Wisconsin (8.7 percent). Also, according to the report, “Illinois public utilities and income taxes were relatively high.”
It was also announced this week that, according to The Pew Charitable Trusts, Illinois’ unfunded pension liability accounts for 10 percent of the nation’s total pension debt.
The total unfunded pension liability for the United States was $1.1 trillion in 2015. That same year, Illinois’ unfunded liability was $111.55 billion, making it 10 percent of the nation’s total pension debt.
What these reports demonstrate, says State Sen. Tracy (R-Quincy), is the need for Illinois to enact common-sense structural reforms, such as pension reform and property tax relief, in order to enact a full-year, balanced budget that will provide a strong fiscal foundation for future budget planning, while at the same time making Illinois attractive to employers.