The January – February issue of the Illinois Real Estate Journal contained an article on page 25 that starts to put into perspective why our state is in such bad financial shape. It quotes Geoffrey Hawkins, a U of I professor and Director of Regional Economics Applications Laboratory (REAL) who had some UNREAL statistics. Since 2000, the State has lost 440,000 jobs and is predicted to lose another 100,000 in 2010. The 440,000 figure equates to nearly $1 billion in lost revenue for the State - $400 million in lost sales tax and $500 million in lost income tax. Illinois has had 13 consecutive years of no job growth. Hey, we’re trying to fill up some buildings here!
I attended a Legislative Breakfast on March 1 when State Representative Mike Tryon was saying that only 5 states in the U.S. have budget surpluses. Two of these states have no state income tax. One would ask how a state can have a budget surplus with no income tax? If a prospective business had the option to set up shop in a state with a 3% income tax vs. one with zero income tax, what are the odds it would go to the higher taxing state? With the businesses come the jobs. Seems to me we need to LOWER the income tax rate, not increase it. What’s your take on this?
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