Speaking on behalf of thousands of manufacturing companies across the state, the Illinois Manufacturers’ Association expressed strong opposition to the graduated income tax proposals pushed by Democrat Rep. Christian Mitchell and Democrat Leader Lou Lang that will make Illinois’ top tax rate the 2nd highest in the United States.
“This is a $2 billion tax hike on successful job creators including many small and medium-sized manufacturing companies that pay taxes under the individual rate. This is exactly the wrong message to send to job creators when we need to grow our economy and create jobs for hard working men and women in Illinois,” said Greg Baise, president & CEO of the Illinois Manufacturers’ Association. “Illinois already has the highest property tax rates in the United States and now Democrats want to make our income taxes among the highest in the nation as well.”
Illinois manufacturers lost 15,000 good, high-paying jobs last year that averaged more than $70,000 in wages and benefits.
Baise added, “The IMA does support comprehensive tax reform and passage of pro-growth policies such as workers’ compensation reform that will stimulate job growth and capital investment in the state.” The IMA notes that these policies will also generate revenue for Illinois in both the short and long term.
The current flat tax is one of few economic advantages that Illinois enjoys.
- The top tax rate under the Democrat plan is 9.75 percent
- Businesses filing under the individual income tax rate also pay a 1.5 percent corporate personal property tax replacement tax
- In total, the top rate on businesses and individuals will be 11.25 percent.
- Illinois’ top tax rate will be the 2nd highest in the country trailing only California at 13.3 percent.