Income Tax

Released October 21, 2019

The state of Illinois faces a significant structural deficit into the future. The report highlights the nature of the structural deficit and identifies two key causes: the state’s historically flawed  tax policy and the plan devised for repayment of Illinois’ pension debt. CTBA proposes both the adoption of the Fair Tax and a reamortization of the pension debt as described in the report titled: Addressing Illinois’ Pension Debt Crisis With Reamortization. Doing so would allow the State to ensure full funding for the Evidence Based Funding Formula while also improving the status of Illinois’ public employee pension system and eliminating the State’s structural deficit by 2042.

Released May 22, 2019

The Center for Tax and Budget Accountability (CTBA) released a report, How a Graduated Rate Income Tax Would Help Reduce After-Tax Income Inequality in Illinois, which shows that the implementation of a graduated rate income tax can reduce the regressivity of Illinois’ state and local tax system

Released May 22, 2019

Since 1979, the nation has seen a rapid and significant increase in income inequality between low- and middle-income Americans on the one hand, and the wealthiest one percent on the other.

Released April 30, 2018

This report makes the case for a graduated rate state income tax in Illinois, and illustrates two possible rate structures that would accomplish each of three major objectives:

Released August 12, 2015

This Report provides a detailed analysis of both Governor Bruce Rauner’s and the General Assembly’s two very different proposals for the FY2016 General Fund budget. Both budget proposals would cut services and increase the state’s deficit due to the phase down of the temporary tax increases in the state’s personal and corporate income tax rates that became effective on January 1, 2015. Collectively, those income tax rate cuts will cause Illinois’ General Fund to lose $4.6 billion in recurring revenue over the course of the full fiscal year.

Released August 26, 2009

CTBA's August 2009, testimony to the Pension Modernization Task Force, Funding Subcommittee.

Released October 10, 2006

An overview fiscal systems in general and the of the Illinois' fiscal system.

Released April 4, 2007

Answers to frequently asked questions about Illinois' fiscal system

Released April 17, 2007

Written supplement to oral testimony provided to the House Revenue Committee during its April 2007 subject matter hearing on tax fairness.

Released February 26, 2009

A Fact Sheet on Illinois' state Earned Income Tax Credit, and legislation from the 96th General Assembly that would have increased it.

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