SPRINGFIELD – One of the key manufacturing groups in Illinois is opposed to Democrat State Rep. Lou Lang and Christian Mitchell's efforts to make Illinois hold the second highest tax rate in the country.
“This is a $2 billion tax hike on successful job creators including many small and medium-sized manufacturing companies that pay taxes under the individual rate. This is exactly the wrong message to send to job creators when we need to grow our economy and create jobs for hard working men and women in Illinois,” said Greg Baise, president & CEO of the Illinois Manufacturers’ Association.
“Illinois already has the highest property tax rates in the United States and now Democrats want to make our income taxes among the highest in the nation as well.”
Illinois manufacturers lost 15,000 good, high-paying jobs last year that averaged more than $70,000 in wages and benefits. Baise added, “The IMA does support comprehensive tax reform and passage of pro-growth policies such as workers’ compensation reform that will stimulate job growth and capital investment in the state.” The IMA notes that these policies will also generate revenue for Illinois in both the short and long term.
IMA said "The current flat tax is one of few economic advantages that Illinois enjoys":
- The top tax rate under the Democrat plan is 9.75 percent
- Businesses filing under the individual income tax rate also pay a 1.5 percent corporate personal property tax replacement tax
- In total, the top rate on businesses and individuals will be 11.25 percent.
- Illinois’ top tax rate will be the 2nd highest in the country trailing only California at 13.3 percent.
This is a tax increase contrary to claims by the sponsors, who pretend that this is a tax cut. Under Illinois law, the individual income tax rate will be reduced to 3.25 percent in the future so their lowest rate of 3.5 percent on the graduated scale means that every single Illinois taxpayer will see an increase on their tax bills, the group said in a press release.