Illinois Ranked 31st for Business Tax Policy

Illinois ranks 31^st in the nation when it comes to business tax policy.  This is according to the Tax Foundation, which researches tax policy.  Joe Henchman, one of the authors of the report, says the personal income tax rate of 5 percent, under which many businesses also are taxed, isn’t bad. But everything else is.  “Property taxes are very high, the unemployment insurance system (is) very high and sales taxes in many parts of the state are very high, so all of that together results in a middle-of-the-pack score, but it’s a state that’s been dropping significantly in the last couple of years as these taxes have gone up,” he said.

 

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The state dropped one place from No. 30 last year.  Illinois has a combined corporate tax rate of 9.5 percent.  Both individual and corporate income taxes were raised by 2 percentage points at the start of 2011.  Among neighboring states, the study characterizes Iowa and Wisconsin as having more unfavorable tax environments for business, while Indiana, Missouri and Kentucky scored better than Illinois.

 

The report is at http://taxfoundation.org/article/2014-state-business-tax-climate-index

 

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