Pritzker ‘fair tax’ would drop Illinois business climate to 48th in nation
by Joe Barnas
March 12, 2019
Under Illinois Gov. J.B. Pritzker’s progressive tax proposal, Illinois’ business tax climate ranking would plummet to 48th in the nation, beating out only California and New Jersey on the nonpartisan Tax Foundation’s State Business Tax Climate Index. That index measures state tax competitiveness and structure. It is especially concerning for Illinoisans seeking work, given that small businesses create nearly two-thirds of the state’s new jobs. “Were Pritzker’s proposal adopted, Illinois would trail its peers in just about every aspect of its tax code,” the Tax Foundation wrote. Illinois ranks 36th for its business tax climate without the progressive tax. READ MORE
CHICAGO TRIBUNE How Pritzker’s tax proposal sets up a pricey cliff and penalizes marriage When it says that the top rate would be 7.95 percent on net income over $1 million, you would expect that rate to apply to just the extra dollars of income above the $1 million mark. But that’s not how this proposal would work. For example, if net income goes above the $1 million threshold by just one dollar, that dollar plus the entire $1 million of income that would have been in the lower brackets, all gets pushed into the top bracket, where all of it would be taxed at 7.95 percent.