Governors look to gain from Illinois tax hikes
As Governor Pat Quinn signed a new law raising personal and corporate taxes in Illinois on January 13, other governors began to salivate over the idea of poaching business from the Prairie State.
The Illinois personal income tax rate rose 67 percent to 5 percent, up from 3 percent. The corporate income tax rate rises to 7 percent, up from 4.8 percent. These increases are expected to stay at this new level for four years and then are scheduled to decline. The tax hike was pushed through at the end of the lame-duck legislative session to fill a $6 billion hole in the state budget, pay old bills and send more money to schools.
Republican governors around the country have seen this move as a sure-fire way to run business out of Illinois, and they hope to capitalize on it. New Jersey’s Governor Christie has said that he plans to visit Illinois in efforts to move those businesses to New Jersey. Indiana’s governor compared Illinois to “The Simpsons” and Wisconsin has already launched a campaign for firms to “Escape to Wisconsin.”
The Christian Science Monitor points out that Indiana and Wisconsin would have to lower their corporate income tax rates to gain an upper hand on Illinois as both states still have a higher corporate tax rate than their neighbor.
To read more about the Illinois tax hikes, visit:
Govs see opportunity in Illinois tax hikes – Stateline.org
Quinn signs tax hike into law – Chicago Tribune
Illinois tax hike: Will businesses flee to Wisconsin? – CSMonitor.com
The Illinois Chamber of Commerce has been following the issue closely as noted in their Government Affairs Report. Visit their suggested links for more information on the tax increase:Fox News Chicago: Indiana Governor Mitch Daniels: Illinois is like the Simpsons
USA Today: Illinois Enacts Tax Increases to Cut $15 Billion Deficit
San Francisco Chronicle: Illinois Governor to Seek $8.75 Billion Bond for Overdue Bills
WREX: Some Illinois Businesses Could Go North Because of Tax Hike
Chicago Sun-Times: Wisconsin Gov Likes Illinois Tax Hike
Chicago Tribune: Goodbye, Jobs