Personal Income Tax

Released September 9, 2015

This Report offers a solution to Illinois' longstanding fiscal shortcomings. There are a number of common sense, data-driven initiatives that will modernize the tax code—and still keep Illinois relatively low tax. The Report details how changes to Illinois' tax policy, primarily to its income and sales taxes, and re-amortizing its pension debt can completely eliminate its structural deficit.

Released December 22, 2014

CTBA's issue brief, The Pending FY2016 Fiscal Cliff details the significant—potentially over $12 billion— fiscal shortfall facing the next General Assembly and Governor-elect Bruce Rauner as they work to craft a Gener

Released August 31, 2014

This Issue Brief provides CTBA's analysis of gubernatorial candidate Bruce Rauner's position paper on fiscal policy, "Bring Back Blueprint: Jobs and Growth Agenda” (the “Blueprint”). The Blueprint represents candidate Rauner’s most complete policy statement on how to resolve the very real and serious fiscal problems that have plagued Illinois state government for decades. After taking into account all of the Blueprint’s proposals, the Illinois budget would be $5.9 billion short in FY2016, and that is before factoring in the current projected deficit from FY2015, which would increase the total accumulated deficit to $12.4 billion in FY2016. The Blueprint presents no data, plan, or policy proposal as to how to balance the budget.

 

Released June 9, 2014

Because the Illinois legislature failed to act during the spring 2014 legislative session, both of the temporary state income tax increases that became law under the Taxpayer Accountability and Budget Stabilization Act of 2011 (TABSA) will begin to phase down halfway through Fiscal Year (FY) 2015, which begins on July 1, 2014. Under TABSA, the personal income tax rate will decline from 5 percent to 3.75 percent, and the corporate income tax rate will drop from 7 percent to 5.25 percent beginning on January 1, 2015. 

Released May 19, 2014

This Report provides a detailed analysis of Governor Pat Quinn’s two very different proposals for the FY2015 General Fund budget—a Recommended Budget and a Doomsday Budget. This unconventional approach to the FY2015 budget was forced on the Governor because of the scheduled phase down of the temporary tax increases in the state’s personal and corporate income tax rates that became effective in 2011.

Released April 7, 2014

Policy leaders across Illinois have identified supporting small businesses and entrepreneurship as key to reviving the state’s sluggish economy. And no wonder, given that over 99 percent of all businesses in Illinois are “small business” as defined by the Small Business Administration.  This Report, identifies best practices and policy initiatives decision makers can take to improve the state’s economy and aid small businesses in Illinois.

Released March 28, 2014

Drawing on reports released by Stanford University and the Center on Budget and Policy Priorities, this Issue Brief debunks the myth that if Illinois increased income tax rates on higher incomes there would be a mass exodus of millionaire households out of the state and points out the importance of moving to a fair tax.   

Released May 7, 2010

Fact Sheets and Report on House Bill 174 of the 96th General Assembly. This tax reform bill would have implemented a number of changes to Illinois' tax structure including tax increases of the personal and corporate income taxes. Thus, generating new revenue for the state.

Released April 5, 2011

Illinois does not currently tax pensions or retirement funds such as 401(k) plans. This Fact Sheet provides an estimate how much revenue could be generated by taxing some retirement income.

Released February 28, 2007

This Fact Sheet provides information on how Illinois could reform its fiscal system to provide equitable education funding.

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