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Illinois finished 36th overall in the report, which looks at the
state's corporate taxes, individual income taxes, sales taxes,
property taxes, and unemployment insurance.
Jannelle Fritts of the Tax Foundation worked on the report and
said Illinois could have been ranked even lower than 36th if not
for one tax.
"Illinois is not ranked in an enviable position, but in all
reality, their income tax, which is a flat rate and a relatively
low rate even though it is higher than some of its neighbors, is
really keeping their score up," Fritts told The Center Square.
Illinois worst ranking on the list was in the property tax
category, where they ranked as the sixth worst state.
"Additionally, as I am sure everyone in Illinois knows, their
property taxes are not very competitive," Fritts said. "Those
collections tend to be very high, higher than most states."
Illinois also is among only four states that still need to pay
outstanding state unemployment trust fund debt, with $1.3
billion still left to be paid carrying interest for taxpayers.
If not addressed by Nov. 10, the state could have its Federal
Unemployment Tax Act credit reduced by 0.3% each year, according
to a letter from members of the U.S. Congress to Gov. J.B.
Pritzker.
Fritts explained how this could result in even higher taxes for
Illinois businesses.
"Some of the problems that Illinois runs into with its
unemployment is that it has a solvency tax," Fritts said. "If
the unemployment trust fund gets lower than a certain level then
tax rates will be jacked up in order to make up for the lost
revenue."
Illinois finished 38th in the corporate tax rate, 13th in the
individual income tax rate, 38th in sales tax, and 43rd in
unemployment tax.
Andrew Hensel has years of experience as a
reporter and pre-game host for the Joliet Slammers, and as a
producer for the Windy City Bulls. A graduate of Iowa Wesleyan
University and Illinois Media School, Andrew lives in the south
suburbs of Chicago.
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