Illinois business group warns of ‘backbreaking’ progressive income tax

By Greg Bishop | The Center Square
The Center Square

(The Center Square) – Manufacturers say legislators at the Illinois State Capitol have done enough damage and a progressive tax would be too much.

Last week, former Illinois Gov. Pat Quinn proposed a 3% surcharge on incomes over $1 million. The effort comes after voters in 2020 disapproved of changing the state’s flat tax to a tax with higher rates for higher earners. All the talk comes as Chicago’s mayor calls for “progressive revenue” from Springfield.

Gov. J.B. Pritzker said state lawmakers are already talking.

“I believe that we need to have a system that is more progressive and less regressive than the one that we have now,” Pritzker said. “I think it is something that is being talked about by members of the General Assembly.”

Pritzker was asked about whether voters are ready for another push.

“I do think a graduated system is better than a flat tax system, and so if there’s a possibility for us to have a system like that, it’s better than the one we have,” Pritzker said.

On Tuesday, Technology and Manufacturing Association Executive Vice President Dennis LaComb said even the talk about such policies will turn prospective businesses away from Illinois.

“The rhetoric to revive a progressive tax is not only reckless but dangerous—prospective businesses will hear that and avoid Illinois, struggling working families will no longer be able to afford to live here and move elsewhere, and manufacturers and businesses looking to expand in this state will have to account for added taxes,” LaComb said in a statement.

LaComb criticized recent action out of Springfield.

“Hasn’t Springfield done enough damage already? From the unaffordable energy and transit bills that were passed in veto session to decoupling from federal tax cuts that would have put more money back into the hands of our manufacturers, the policies coming out of Springfield continue to stifle economic growth and hurt those needing support most,” he said. “Small and midsize manufacturers are already struggling to keep up – a progressive tax would be backbreaking.”

It’s time to put the push for a progressive tax to bed, LaComb said.

“Instead of wasting time, money, and resources to sell a failed product that voters rejected, let’s come together and come up with real, common-sense solutions that balance our budget, eases the burden on working families, creates an environment in Illinois where small businesses and their employees can thrive and prosper,” he said.

Illinois state spending has increased 43% under Pritzker, an increase of $16 billion annually since 2019.