Illinois state Rep. Martin McLaughlin (R-Barrington Hills) | repmclaughlin.com
Illinois state Rep. Martin McLaughlin (R-Barrington Hills) | repmclaughlin.com
A recent report by WalletHub scored Illinois last in the nation in “taxpayer friendliness,” and state Rep. Martin McLaughlin (R-Barrington Hills) took to social media to call attention to the problem.
“Illinois’ combined state and local tax rate of nearly 15.1% is the highest among all 50 states and the District of Columbia,” he posted on Facebook. “The dubious distinction comes at a time when Illinois is forecast to bring in billions of revenue above projected estimates, and underscores the urgent need for permanent tax relief.”
McLaughlin pointed out that the state and local tax payments for Illinois households making the median U.S. income was $10,463; the highest amount in the nation. He also noted that even when adjusted for cost of living, Illinois was still 47th on the national list.
The WalletHub report identified Illinois, Connecticut, New York, Pennsylvania and Kansas as the five states with the highest tax rates. Alaska, Delaware, Montana, Nevada and Wyoming were named as having the lowest tax rates. Alaska residents pay the least taxes in the country at 6.05%.
Illinois also ranked 50th in gas taxes per gallon, with only California residents paying more.
The report added that each year U.S. households pay an average of approximately $11,000 in federal income taxes, and taxpayers in states with the highest tax rates pay twice as much as those in the least-expensive states.
“While we’re all faced with that same [federal] obligation, there is significant difference when it comes to state and local taxes,” WalletHub said.
The report went on to note that low income taxes does not necessarily translate to low taxes overall. One example was in Washington, where there is no income tax, but residents still spend more than 8% of their income on sales and excise taxes each year. There is also no income tax in Texas, but residents pay 1.74% of their income on real estate taxes (one of the highest tax rates in the U.S.). In California, however, residents pay nearly 5% in sales and excise taxes but only 0.75% in real estate taxes.
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