February 8, 2005
Proposed Tax Bill Would Worsen Illinois' Tax Climate
NEWS RELEASE
Washington, D.C.—A proposed tax bill in the Illinois state legislature threatens to worsen the state’s business tax climate according to a new analysis by the Tax Foundation. (View the analysis here.)
“Passage of the bill would make Illinois more hostile to business investment, less competitive in attracting new jobs, and would harm the state’s ability to keep current jobs,” said Chris Atkins, co-author of the study and Staff Attorney with the Tax Foundation.
The bill, H.B. 750, would raise corporate and individual income taxes as well as state sales taxes. The analysis estimates the impact of its passage on Illinois’ ranking in the Tax Foundation’s annual State Business Tax Climate Index, a study that ranks the 50 states on how business-friendly their tax systems are.
“Passage of this bill would single-handedly lower Illinois’ ranking in the Index from 23rd to 38th,” said Atkins. “The economic damage inflicted by the tax increases in H.B. 750 would far outweigh any contemplated benefits.”
The State Business Tax Climate Index rewards states that are neutral and create a “level playing field” for economic activity, have moderate tax rates, and do not have burdensome compliance rules.
The Tax Foundation has monitored tax policy at the federal, state and local levels since 1937. Best known for its annual calculation of Tax Freedom Day®, the Tax Foundation is a nonprofit, nonpartisan 501(c)(3) organization based in Washington, D.C.
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Media contact: Bill Ahern (202) 464-6200.
