The Institute on Taxation and Economic Policy says Illinois has one of the most regressive taxes in the nation, largely due to its flat income tax. In its annual “Who pays?” report, the institute said the poorest 20 percent of Illinois households pay 14 percent of their income in taxes because of the flat tax in addition to high sales and property taxes.
ITEP Work in Action
Advocates and policymakers at the state and federal levels rely on ITEP’s analytic capabilities to inform their debates on proposed tax policy changes. In any given year, ITEP fields requests for analyses of policies in 25 or more states. ITEP also works with national partners to provide analyses of federal tax policy proposals. This section highlights reports that use ITEP analyses to make a compelling case for progressive tax reforms.
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ITEP Work in Action November 1, 2018 Cherokee Tribune & Ledger-News: Financial Watchdog: Pritzker’s Spending Promises Would Raise Taxes on Middle Class
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ITEP Work in Action October 25, 2018 News and Tribune: In Indiana and Illinois, Taxes Hit Low-earners Hard
TERRE HAUTE — Low-earning residents of Indiana and Illinois pay a greater share of state and local taxes than those in all other Midwestern states, and those in most states nationally, according to a new study by a non-partisan think tank.
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ITEP Work in Action January 9, 2017 Voices for Illinois Children: Fair Tax Bill Introduced
Representative Lou Lang introduced a fair tax rate structure (House Bill 689), which would provide over 99% of income taxpayers with a tax cut while raising $1.9 billion to prevent… -
ITEP Work in Action May 7, 2015 Voices for Illinois Children: Avoid Cuts, Choose Revenue
Governor Rauner has proposed to close this massive gap through damaging cuts to essential programs and services that strengthen Illinois families, children, communities, and our economy — including child care… -
ITEP Work in Action January 21, 2015 Fiscal Policy Center: Fair For Whom? IL Taxes the Lowest Earners at the Highest Rates
As part of his campaign platform and “Jobs and Growth Agenda,” Governor Rauner has identified the need to “overhaul the tax code so that it’s fair to all taxpayers.” We… -
ITEP Work in Action July 30, 2014 Voice for Illinois for Children: Congress Must Act to Stop Corporate Inversions
A number of high-profile U.S. corporations have, or are reportedly considering, corporate “inversions,” where they move their “headquarters” overseas to avoid paying U.S. corporate income taxes. Unless Congress acts, federal… -
ITEP Work in Action May 22, 2014 Voices for Illinois Children: Double the EITC to Make Illinois Taxes Fairer (Among Other Great Things)
The more money you make in Illinois, the lower share of it you pay in state and local taxes. If that sounds unfair, that’s because it is. In fact, low-… -
ITEP Work in Action April 15, 2014 Voice for Illinois for Children: Improving Tax Fairness Through Income Tax Reform
When adding up the effect of all state and local taxes, Illinois asks middle- and low-income households to pay a percentage of their income that is two to three times… -
ITEP Work in Action March 20, 2014 Voices for Illinois Children: Profitable Companies in Illinois Not Paying Their Fair Share of State Income Taxes
Over the past five years, many profitable Fortune 500 corporations, including several based in Illinois, paid little or no state income taxes to any of the states in which they… -
ITEP Work in Action March 12, 2014 Voices for Illinois Children: New FPC report — tax cuts won’t improve the economy or create jobs
Allowing current state income tax rates to expire will cause a revenue collapse that would threaten Illinois’ economic recovery, curtail the ability to support vital investments, and create more uncertainty… -
ITEP Work in Action February 27, 2014 Fiscal Policy Center: Profitable companies get free pass on federal income tax
There’s new evidence that many of the country’s biggest companies are getting a free pass on taxes, including several businesses headquartered here in Illinois. In fact, many of these profitable… -
ITEP Work in Action January 15, 2013 Center for Tax and Budget Accountability: Issue Brief: Why Taxation in Illinois is Unfair
Tax policy is by its nature a contentious subject. In the end, individuals pay different proportions of their incomes in taxes to fund public services and a completely different matrix… -
ITEP Work in Action January 15, 2013 Center for Tax and Budget Accountability: Citizens Guide to the Illinois State Budget & Tax System
The Illinois State Budget is the state’s fundamental policy document. It defines what programs and services will receive financial support from the state. In a standard, non-overtime legislative year, Illinois…