New report looks at IL income tax increase
Opponents of Governor Pat Quinn's proposed income tax increase say it will chase jobs out of Illinois. A new report that challenges that assumption.
What to do about Illinois' expiring income tax hike has been the star of the debate this spring. The governor threatens cuts unless its extended, while Republican leaders say keeping the higher tax rate is a bigger threat to the economy.
Ralph Martire, director of the Chicago-based Center for Tax and Budget Accountability, says that's a misunderstanding. He says property taxes are the true obstruction of economic growth.
"It is a hard cost a business has to pay irrespective of its profitabililty. You want to have that facility, whether you're renting it or you own it, you pay your property taxes. Doesn't matter if you're profitable."
Martire says there's no hope of lowering property taxes, however, if the state allows its temporary income tax hike to sunset. He says the state must first have adequate revenue in order to direct spending -- like education funding -- more equitably.