Rep. Martin McLaughlin | Facebook/Martin McLaughlin
Rep. Martin McLaughlin | Facebook/Martin McLaughlin
State Rep. Martin McLaughlin (R-Lake Barrington) shared a recent study that found Illinois' economy is doing worse than those of its neighboring states, a situation the legislator attributes "to anti-business, anti-competitive" state policies.
"With all the resources that Illinois has, both in terms of technology and workforce, AND with Illinois being a critical Midwest transportation hub, the only reason that our state lags economically is due to anti-business, anti-competitive policies at the state level," McLaughlin said on Facebook. "lllinois can become a leader in economic opportunity but that means we have to implement policies that promote investment, encourage innovation and make life affordable again for all our residents."
A recent WalletHub report ranked all of the states based on economic activity, economic health and innovation potential, The Center Square reported. Illinois came in 32nd overall, lagging behind most other states in the Midwest.
"We looked at each state through about 30 different metrics, including economic growth and economic strengths and that ranges from GDP growth to startup activity, things that show that your economy is moving along," said Jill Gonzalez, a policy expert with Wallethub. "Illinois needs improvement."
Michigan, Minnesota and Iowa all came in the top 20, and Wisconsin came in at 27. The Center Square noted that Illinoisans face some of the highest taxes in the country.
A separate WalletHub report found that Illinoisans shoulder the highest tax burden in the nation, the nonprofit organization Illinois Policy reported. On average, an Illinois household pays $9,488 in taxes each year – almost 39% more than the national average. Illinoisans pay the second highest gas tax and second highest effective property tax rate, but Illinois' public services do not reflect the high level of taxation, the organization said. Illinois has the worst pension debt in the country, causing much of the state's taxpayer dollars to go toward the debt, Illinois Policy said.
As of 2019, Illinois had the fourth highest outstanding government debt in the country, according to Statista. Illinois' debt stood at $165.1 billion, less than only California, New York and Texas. Forty-four states and Washington, D.C. have outstanding debts of less than $100 billion.
Governments with large debts and deficits run the risk of exacerbating inflation, according to Forbes. Inflation functions as an additional tax on consumers, while also causing uncertainty for investors, leading to slowed economic growth, Forbes said.