Report: Illinois near bottom in business tax ranking, even before tax increase went into effect
A recent report from the Anderson Economic Group shows Illinois ranks 35th in the country in business tax burden, up from 32nd a year before. The findings, however, were from the latest fiscal year data available, 2016, which came before the corporate and personal income tax rates were increased in 2017.
The report shows Illinois businesses have a total tax burden of 9.74 percent of their earnings after the cost of operating the business but before taxes are withdrawn. The Anderson Economic Group says they “use taxes paid as share of profits, as this measure directly compares taxes paid to business income available to pay the tax.”
Of the states around Illinois, Missouri’s business tax burden ranks 8th, Iowa’s ranks 14th, Wisconsin’s ranks 13th, Michigan’s ranks 9th, Indiana’s ranks 7th, and Kentucky ranks 31st.
Senate Republicans say this report underscores the need for Illinois to pass measures that will grow the economy and make Illinois more attractive. They have pushed pro-growth, pro-job reforms at the Statehouse for years, only to have the Democrat majority stonewall most efforts.