Progress Illinois: Tax Fairness Key to Solving Illinois Budget Crisit

Illinois has the fifth most regressive state tax system in the nation due to its flat income tax, under which all residents are taxed at the same rate despite their income, and its relatively high reliance on sales and property taxes, according to a separate report released earlier this year by the Institute on Taxation and Economic Policy (ITEP). The state’s flat income tax rate for individuals fell from 5 percent to 3.75 percent on January 1, when the temporary income tax hike rolled back.

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