A recent study conducted by WalletHub, a personal finance website, found that Illinois ranks ninth in the country for overall tax burden on its residents. This is due in part to the state's high property tax rates, which rank it tenth in the nation. Additionally, Illinois residents face high individual income and sales and excise tax burdens, putting them in the top half of states in these categories.
The study focuses on tax burdens rather than tax rates, as this provides a clearer picture of how much of an individual's income goes towards taxes. According to the study, Illinois residents lose 9.3% of their personal income to taxes when property, individual income, and sales and excise taxes are taken into account. This means that nearly one hour of pay for every eight-hour work shift is going towards taxes.
Interestingly, the study found a significant disparity between Republican and Democratic states when it comes to tax burden. On average, Republican states have a lower tax burden than Democratic states, with the former having a lower tax burden than the national average and the latter having a higher tax burden.
With Illinois' high tax burden, coupled with record-high inflation, Senate Republicans are advocating for relief for Illinois families. Recently, they made a public push for measures that would provide savings on essential items such as food, drugs, childcare, and energy costs. The hope is that by easing the financial burden on Illinois residents, families will be better equipped to weather the economic challenges ahead.