A new study by the independent and non-profit Tax Foundation, has ranked Illinois 36th in its 2023 tax climate report, which looks at each state’s comprehensive tax burden.
The Foundation looks at every state’s corporate taxes, individual income taxes, sales and property taxes, and unemployment insurance data when creating the list.
In a recent interview, Jannelle Fritts of the Tax Foundation noted that if not for the state’s flat income tax, Illinois’ ranking would have been lower. In 2020, Illinois voters soundly rejected a proposal by Gov. JB Pritzker to amend the State Constitution to eliminate the flat tax so he could charge higher rates on small and large business owners.
Fritts also noted that Illinois is one of only four states that has yet to fully pay off unemployment trust fund debt. That debt hole in Illinois remains at $1.3 billion and will likely be passed along to business through higher unemployment insurance premiums, and to unemployed people through reduced benefits.