State Sen. Dan Duffy (R-Lake Barrington) said last week that it appears Illinois tax structure is doing better, as it moved up to 23rd on a recent state tax ranking list, but reforms are still a necessity.
Duffy said he believes increasing revenue, while making reforms and a better business climate, can lead the state forward.
The bump to No. 23 from No. 31 on the Tax Foundation's latest "State Business Tax Climate Index" was due to the temporary income tax hike that expired after four years, Duffy said.
Democrats pushed through the temporary increase in tax rates, both on the corporate and individual level, in January 2011 to take care of Illinois’ pension crises, which would pay down the state’s large stack of unpaid bills. The hike helped the state generate over $32 billion over a four-year period. However, the fiscal problems of the state still remained.
The state’s current pension debt is $132 billion, while Illinois’ credit rating has been downgraded and unpaid bills top out at over $7 billion, which could grow to over $8.5 billion by the end of the year.
Currently, the income tax for corporations is 7.75 percent, while the individual rate is 3.75 percent.
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