It Is All About Revenue: A Common Sense Solution for Illinois’ Fiscal Solvency
It Is All About Revenue: A Common Sense Solution for Illinois’ Fiscal Solvency
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. As this Report details, the state can completely eliminate its structural deficit by re-amortizing its pension debt and making the following tax policy reforms:
- Reform state income tax policy by:
- Increasing the personal income tax rate from 3.75 percent to 4.75 percent or 5 percent;
- Including some retirement income in the personal income tax base;
- Increasing the corporate income tax rate from 5.25 percent to 6 percent;
- Eliminate those corporate tax expenditures which are not generating a public good;
- Reform sales tax policy by expanding the base of sales tax to include most consumer services; and
- Impose a tax on sugary sweetened beverages.