Rep. Paul Jacobs (R-Carbondale) | Photo Courtesy of Paul Jacobs website
Rep. Paul Jacobs (R-Carbondale) | Photo Courtesy of Paul Jacobs website
Rep. Paul Jacobs recently shared WalletHub's ranking of Illinois for tax friendliness in a Facebook post, which shows that Illinois was ranked last.
"According to a new study from the personal-finance website WalletHub, Illinois’ combined state and local tax rate of nearly 15.1% is the highest among all 50 states and the District of Columbia," Jacobs wrote.
The Tax Foundation stated that Illinois' taxes rank 36th overall in their 2023 State Business Tax Climate Index.
The state has a flat 4.95% individual income tax rate. Illinois also has a 9.50% corporate income tax rate. Illinois has a 6.25% state sales tax rate and a 4.75% max local sales tax rate. The total state and local sales tax rate is 8.82%.
Although the taxes are significantly high, Illinois is expected to generate billions in revenue with hopes to aid the urgent need for permanent tax relief.
"The dubious distinction comes at a time when Illinois is forecast to bring in billions in revenue above projected estimates and underscores the urgent need for permanent tax relief," Jacobs wrote. "In Illinois, state and local tax payments by households making the median U.S. income amounted to $10,463, the highest amount in the nation. When adjusted for cost of living, Illinois still ranks 47th on the list."
ABC7 reported that Gov. J.B. Pritzker announced the potential for tax cuts if revenue exceeds expectations.
His announcement followed a week after the legislature's nonpartisan Commission on Government Forecasting and Accountability, or COGFA, increased its revenue estimates by about $1 billion for the current and upcoming budget years combined.
"I would like to see – as we feel comfortable with these new revenues coming in and their stability; and I think we're seeing a few years in a row now of the stability of that revenue – that we should be talking about whether there are tax cuts that we can implement," Pritzker said.
Jacobs was first elected to the Illinois House in 2020. A Republican, his legislative experience includes serving on the Tourism Committee and Higher Education. Jacobs is a state representative who resides in Pomona, according to the Illinois House.
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