Illinois

Undocumented immigrants who work and pay taxes but don't have a valid Social Security number for either themselves or their children are excluded from federal EITC and CTC benefits. Fortunately, several states have stepped in to ensure undocumented immigrants are not left behind by the gaps in the federal EITC and CTC. State lawmakers should continue to ensure that immigrants who are otherwise eligible for these tax credits receive them.

The report was produced in partnership with the Center on Budget and Policy Priorities and co-authored by CBPP’s Deputy Director of State Policy Research Samantha Waxman.[1] Click here to use our State Mansion Tax Estimator A historically large share of the nation’s wealth is concentrated in the hands of a few, a reality glaring in […]

State budgets are falling into place as lawmakers near the end of their legislative sessions...

Legislative sessions across the country are still very much in for summer, which means more pencils, more budgets, and more tax plans...

Uncertainty abounds in state tax debates lately...

This week, special sessions with major tax implications are in the air...

Read the report here.

Happy (belated) Tax Day!

Increased tax revenues and increased tax progressivity need to be further explored as policy solutions in Illinois. More specifically, the adoption of worldwide combined reporting and a state-level child tax credit, could help prevent infant deaths in our state.

State and local tax codes can do a lot to reduce inequality. But they add to the nation’s growing income inequality problem when they capture a greater share of income from low- or moderate-income taxpayers. These regressive tax codes also result in higher tax rates on communities of color, further worsening racial income and wealth divides.

Over the past week Utah continued its slow march toward a more inequitable tax code...

Many state legislative sessions are in the final stretch...

More than one dozen cities and counties levy progressive taxes on high-price real estate transactions — sometimes called mansion taxes — and over a dozen more are considering such policies. By asking buyers and sellers with greater financial means to contribute more to the common good, these policies are equipping communities with resources to make progress on critical challenges of local and national concern.

Anti-tax interests finally found the end of the tax cutting appetite in a few states this week...

Below is written testimony delivered by ITEP Local Policy Director Kamolika Das before the Pennsylvania House Finance Subcommittee on Tax Modernization & Reform on March 1, 2024. Good afternoon and thank you for this opportunity to testify. My name is Kamolika Das, I live in South Philly, and I’m the Local Tax Policy Director at […]

State legislative sessions are in full swing with New Jersey and Oklahoma both particularly active this week...

With many state legislatures now in full swing with activity heating up, some tax cut proposals have lost steam...

While we were hoping to get progressive tax policy wins for Valentine’s Day, many state lawmakers have another idea in mind...

Bills are moving and state legislative sessions are picking up across the country, giving elected officials the opportunity to consider two distinct paths when it comes to tax policy...

Updated July 15, 2024 In 2024, state lawmakers have a choice: advance tax policy that improves equity and helps communities thrive, or push tax policies that disproportionately benefit the wealthy, drain funding for critical public services, and make it harder for low-income and working families to get ahead. Despite worsening state fiscal conditions, we expect […]

The findings of Who Pays? go a long way toward explaining why so many states are failing to raise the amount of revenue needed to provide full and robust support for our public schools.

States got a wake-up call this week as ITEP released the latest edition of our flagship Who Pays? report...

The vast majority of state and local tax systems are upside-down, with the wealthy paying a far lesser share of their income in taxes than low- and middle-income families. Yet a few states have made strides to buck that trend and have tax codes that are somewhat progressive and therefore do not worsen inequality.

The vast majority of state and local tax systems are upside-down, with the wealthy paying a far lesser share of their income in taxes than low- and middle-income families. That’s according to the latest edition of the Institute on Taxation and Economic Policy’s Who Pays?, the only distributional analysis of tax systems in all 50 states and the District of Columbia.

Illinois Download PDF All figures and charts show 2024 tax law in Illinois, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (98.6 percent) state and local tax revenue collected in Illinois. State and local tax shares of family income Top 20% Income Group […]