Illinois’ combined state and local sales tax rate of 8.85%
placed the Land of Lincoln at No. 7 nationwide in 2024. That’s
up from the No. 8 spot the prior year, also with a rate of
8.85%.
Illinois state Rep. Blaine Wilhour, R-Beecher City, said the
report shows how the state is going in the wrong direction.
“We're a fiscal mess,” Wilhour told The Center Square. “That's
what it says about our state. We have unsustainable spending in
our budget and our taxes are going to continue to rise. Number
one, we got over 7,000 units of government and they're all
taxing and they're all taxing way too much.”
Researchers with the Tax Foundation say the state’s combination
of a state sales tax of 6.25% along with an average local sales
tax rate of 2.61% also make it home to the highest state and
average local sales tax rate in the Midwest. The nonpartisan
group added that the state’s poor rankings largely stem from the
combination of lawmakers enacting some of the highest
state-level sales tax rates and the state’s relatively narrow
sales tax base that spans just 26% of the economy.
Wilhour said he fears things may get worse before they get
better.
“Every year in the General Assembly, we enhance pensions, we
create more government, we create more bureaucracy, all of which
cost taxpayers,” he said. “We need to streamline government. We
need to cut government with smart consolidations and we need to
fix our pension system. Until we do those things, there's no
chance of lowering taxes significantly in this state.”
With the state now steadily losing residents, especially young
people looking for opportunity, Wilhour insists he doesn’t see
anything changing anytime soon.
“We need new people,” Wilhour said. “We need new leadership in
Springfield in order for this stuff to really get momentum.”
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