Reports

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.

Topics:Tax and Budget, Illinois Budget, Income Tax, Sales Tax, Revenue Policy, Pensions, Public Pensions

Tags:Personal Income Tax, Tax Rate, Sales Tax, Pension

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