Two separate analyses of Illinois tax policy reveal that, not only do Illinois taxpayers’ pay one of the highest tax burdens in American, but they also pay one of the least fair.
The high tax burden comes from the Chicago-based group ‘Truth in Accounting,’ which analyzed tax rates and then ranked all 50 U.S. states by their ‘Taxpayer Burden’, or the amount each taxpayer would have to pay the state’s Treasury in order for the state to be debt free. TIA researchers ranked Illinois as the third worst state, with a ‘Taxpayer Burden’ of $45,000. The worst 5 were:
All five states have a significant debt burden from underfunded pensions.
“I urge Governor Rauner and his administration to acknowledge the state’s true debt and address this situation immediately before Illinois sinks further into debt. Illinois already has the worst bond rating of all the states; our economy cannot take another financial hit,” said Sheila Weinberg, Founder and CEO of TIA in a news release.
Another analysis of Illinois’ system of taxation finds Illinois is also one of the worst states for taxing the poor and middle class. Wallethub.com made the analysis by first polling more than 1000 Americans on what a ‘fair’ tax system should look like, and then analyzing taxation in each state. You can see the full study here.
Illinois scored poorly even though it ranked low when it came to dependency on sales and excise taxes, which Wallethub’s analysis found is most unfair to those with lower incomes. The state’s high property tax income and flat income tax most likely contributed to the poor ranking.